'Kilkenny isn't insulated': State bodies compete with first-time buyers for houses; US buyers increasingly active

The Institute of Professional Auctioneers & Valuers (IPAV) has just published its latest Residential Property Price Barometer for the first half of 2025.

It confirms what we in the market already see every day: prices are still climbing, fuelled by relentless demand and a severe shortage of supply.

Nationally, house prices rose by 5.05% between January and June, pushing the average Irish home to almost €386,000. Three-bedroom semis led the way, up 5.43%, while two-bed apartments and four-bed semis also recorded strong gains.

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Here in Kilkenny, the Barometer shows three-bed semis averaging €305,000 and four-beds at €385,000. This positions Kilkenny firmly in the middle tier nationally, above counties like Tipperary and Longford, but below commuter counties such as Kildare and Wicklow.

Neighbouring counties, however, are beginning to outpace us. Carlow recorded a remarkable 9.7% rise for three-bed semis to €282,500, while Waterford jumped almost 9% to €306,667. That means Waterford has now overtaken Kilkenny in certain segments of the South-East market.

What we’re seeing is a classic ripple effect. Buyers priced out of Kilkenny are moving into Carlow and Waterford, which drives those markets up. But it doesn’t take the pressure off Kilkenny, it feeds back, because supply here isn’t meeting demand.
The impact on families is stark. More and more buyers are being stretched to their absolute limit. It’s now routine for first-time buyers to rely on family help just to get a deposit together. For those on average wages, the goalposts keep moving.

IPAV Chief Executive Pat Davitt has already warned that the Government’s 41,000-home target for 2025 will be missed. He has called for ‘unprecedented measures’, from fast-tracking planning and infrastructure to encouraging small and medium builders back into the market. In Kilkenny, we need exactly that kind of bold thinking.

More zoned land with services ready, quicker decisions from planning, and a greater mix of housing types. That means starter homes, downsizer options, and adaptable designs and not just one-size-fits-all.

The Barometer also highlights a worrying national trend: the financial-isation of housing. State-backed bodies are competing directly with first-time buyers in the market, filling a gap left by retreating institutional investors. Meanwhile, US buyers are increasingly active in parts of the country, often purchasing as primary residences rather than holiday homes.
That’s a reminder that Kilkenny isn’t insulated.

We’re competing not just locally, but with outside demand. It’s not just from America. We’re seeing a huge influx of cash buyers from a wide variety of nationalities. If we don’t deliver enough homes here, affordability will slip further out of reach for local families.

The IPAV Barometer is clear: prices will continue to rise until supply improves. For Kilkenny, the challenge is to make sure that when new homes do come, they meet the needs of those who live and work here.
Until then, the message is simple: demand isn’t going away - but unless supply does, neither are the price pressures.