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Property prices – who’s to blame?

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By Michael O’Connor

There are multiple theories as to why house prices continue to reach unfathomable heights.

One that gets a lot of airtime is the role of private equity firms in the market. The generally accepted narrative is that these funds come in, buy up all the available property supply and leave nothing for the rest of us. In reality, this effect is somewhat exaggerated.

It's always a crowd-pleaser when you blame surging housing prices on the big bad investment banks. After all, who doesn’t love to rally behind a ‘Vultures Out’ campaign. As much as I would love to burden them with most of the blame, the stats simply don’t back it up.

The share of total home sales that come from investor purchases has actually been in decline. In 2020, estimates showed that investors make up about 20 percent of housing sales.

Bear in mind that number is not just the share of institutional investors but anyone who isn’t just buying a house as their primary residence.

This 20% includes people purchasing second homes, vacation rentals, individual investment properties, and small investors flipping homes for profit.

In the US since 2011, the cumulative acquisitions from institutional investors has approached 400,000 single-family homes. This may seem like a lot, but with 83 million homes in the US, this represents less than half a percent of the market.

If we narrow our focus solely to the 16 million homes on the rental market, institutionally backed firms only own 2.5% of the market.

In reality, large investors make up just one to two percent of all single-family purchases, while other investors make up 18 to 19 percent.

The numbers show that most rentals are owned by small investors; your neighbours and friends.

To be clear, I agree that levies should be in place to prohibit bulk buying of properties, but simply using private equity firms as the scapegoat ignores the crux of the problem.

As masters of the dark arts of deflection, politicians are quick to point the finger. In reality, money supply, over-regulation, a distinct lack of planning, inadequate funding, and extended periods of undersupply post the Global Financial Crisis are the driving forces behind the current housing crisis but I guess it’s easier to fix the blame than fix the problem.

Where do prices go from here?

I expect home prices to grow more moderately in the coming years as more supply reaches the market, but this will take time. Those waiting for a considerable pullback could be left wanting.

Don’t expect housing to become affordable any time soon.

"If I had to guess, it’s going to be years until we see anything approaching a “normal” housing market. We simply didn’t build enough homes following the last housing crash to meet the demand coming from millennials reaching their household formation years" - Ben Carlson 'A Wealth of Common Sense'

Looking ahead, rising rates could slow things a bit if mortgage rates get high enough. With that said, the central banks are relatively boxed in. Interest rates are unlikely to skyrocket given the effect this would have on the service level of Government debt, but that’s for another day.

Remember, just because you think house prices should fall, doesn’t mean they will. The distinction is vital.

The waiting game hasn’t always paid off.

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New Sunday date for 30th anniversary Historic Rally

The Killarney Towers Hotel Killarney Historic Rally will move to a new Sunday date for its 30th anniversary running. The event is scheduled to take place on Sunday, November 29, […]

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The Killarney Towers Hotel Killarney Historic Rally will move to a new Sunday date for its 30th anniversary running.

The event is scheduled to take place on Sunday, November 29, marking the opening round of the 2027 Irish Tarmac Rally Championship Historic category.

Five-time World Rally Championship event winner Paul Nagle will spearhead the event as Clerk of the Course. The appointment carries personal significance, as Nagle is the son of the late Maurice Nagle, the original founder of the rally.

The first Killarney Historic Rally was organised by Maurice Nagle in December 1996, shortly after the international Rally of the Lakes moved to its permanent May Bank Holiday weekend slot. Having served on the organising committee for the old winter Rally of the Lakes, Maurice maintained that Killarney had the capacity to host a motorsport event during the winter period. Over the last three decades, it has grown into Ireland’s only dedicated event for historic rally machinery, where an overall victory is as coveted as a win at the international event in May. “Taking on the role of Clerk of the Course for the 30th anniversary is a massive honour, but more importantly, it is an opportunity to protect and build upon the legacy my father left behind,” said Paul Nagle. “He believed that Killarney’s classic stages were the perfect arena to showcase historic cars, and he fought hard to establish this. Reaching 30 years of Ireland’s only dedicated historic rally proves his vision was right. We are fully committed to making this anniversary edition a special event that honours his memory and celebrates the history of historic motorsport.”

Nagle has promised a return to the classic Killarney tarmac that defined the event’s early years, confirming that stages such as Ballaghbeama Pass and Caragh Lake will feature on the itinerary for the Killarney Towers Hotel Killarney Historic Rally. Since retiring from professional co-driving in 2023,

Nagle has worked as an FIA Safety Delegate on several World Rally Championship events. Work is now underway to secure a strong field of historic rally cars, with some star names expected to join the Irish Tarmac Rally Championship regulars on the entry list. His experience in event management, combined with his international contacts, is currently being used to attract an expanded entry list. A promotional push is underway to secure a large field of historic rally cars, including several drivers from overseas. The event retains the title sponsorship of the Killarney Towers Hotel and Leisure Centre, located on College Street in the centre of Killarney town. The hotel’s town centre location is highly favoured by rally fans who return each year, having proved to be a popular base since the hotel first took on the role in 2023.

Managing Director of the O’Donoghue Ring Collection and Killarney Towers Hotel and Leisure Centre, Gemma Ring commented: “We are incredibly proud to continue our partnership with the Killarney Historic Rally as we enter our fourth year as title sponsor. This year’s event is especially significant as the rally celebrates its 30th anniversary, a remarkable milestone for one of Ireland’s most iconic motorsport events.
At the O’Donoghue Ring Collection, we have always been passionate about supporting events that showcase the very best of Killarney. The Historic Rally brings together competitors, enthusiasts and visitors from across Ireland and beyond, creating a fantastic atmosphere throughout the town while making a valuable contribution to our local businesses and community.
Congratulations to Killarney and District Motor Club and everyone involved in reaching this incredible 30-year milestone. We look forward to welcoming participants and spectators once again and wish everyone a safe, enjoyable and memorable weekend.”

Full route details and regulations for the Killarney Towers Hotel Killarney Historic Rally will be released by the Killarney and District Motor Club in the coming months.

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Rathmore’s Tearmann Lodge raises €1,200 for Kerry Hospice

The staff and residents at Tearmann Lodge in Rathmore recently came together to raise €1,200 for the Kerry Hospice Foundation . The facility, which is run by the Kerry Parents […]

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The staff and residents at Tearmann Lodge in Rathmore recently came together to raise €1,200 for the Kerry Hospice Foundation

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The facility, which is run by the Kerry Parents & Friends Association, hosted a successful bingo evening and raffle in late March of this year. This follows a similar fundraising event held at the centre in 2024.
Residents at the lodge were encouraged to participate in the evening, which proved to be a highly positive and enjoyable experience for everyone involved.
Tearmann Lodge Manager Gillian Kenny facilitated the fundraiser, while staff member Irene O’Donoghue acted as the main organiser, with assistance from colleague Karen McCarthy and other members of the team.
The residential facility provides accommodation for nine residents, alongside an extra bedroom used for respite care when needed.
“Kerry Hospice would be close to the hearts of many here, both residents and staff, whose loved ones have benefitted from the services provided by the charity. We are delighted to be in a position to give something back in return,” Irene O’Donoghue said.
Pat Doolan of the Killarney Branch of Kerry Hospice expressed his gratitude to everyone at the centre during the official cheque presentation.
“This was another lovely gesture by all concerned and I want to thank them for their generosity. I spent some pleasant time over a cuppa with residents and staff members in the comfortable surroundings at Tearmann Lodge on the day of the cheque presentation. Esther Kelleher, who is a resident at the centre, entertained us with a lovely song,” Pat Doolan said

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