The net wealth of Irish households increased by €6.3bn in the first quarter of the year, driven by rising property values, and now stands at €1,247.2bn, figures from the Central Bank show.
The total value of housing assets increased by €15.2bn during the first three months of the year to €854.8bn, due mostly to positive revaluations and more than offsetting an €8.9bn decrease in financial assets.
Of the €555.5bn in financial assets held by Irish households, currency and deposits made up €211.6bn or around 38% while insurance and pension entitlements came to €252.8 or 45%.
Housing wealth represents 68.5% of the net wealth and 60.6% of the total assets of Irish households. Property prices increased 7.5% in the 12 months to the end of the first quarter.
The total liabilities of Irish households, mainly consisting of long-term loans, was unchanged from the end of last year at €163.1bn.
Household loans decreased €500m during Q1 to €157.1bn while total assets increased €6.2bn, causing the debt-to-assets ratio of Irish households to reduce to 11.1%. The debt-to-income ratio, meanwhile, reach 89.3%.
Sarah McGurrin, head of employee benefits with NFP Ireland, said the figures were positive but that it was important that households not be "complacent about their finances or that this rise in wealth is universal or will continue indefinitely."
She went on to cite Central Bank and ESRI expectations that economic growth will decline in 2026 and the risks posed to Irish by the uncertain global outlook, particularly in relation to US President Donald Trump.
The Central Bank found that the wealthiest 10% of Irish households own €645.3bn or 48.6% of household net wealth, although their net wealth declined (-0.5% or €3.2bn) for the first time in five years due to the decreasing value of life insurance and annuity entitlements.
Conversely, the total net wealth of the poorest half of households rose €2.6bn or 2.2% to €117.8bn or 8.9% of the national total due again to the rising value of homes.
Households in the 'middle' part of the distribution, ie those in the 60th to 90th percentile, owned €564.2bn overall, or 42.5% of total net wealth in the country at quarter-end.
The surge in house prices of recent years has no doubt buoyed the wealth of many Irish homeowners – and this is reflected in the findings of today’s report," said McGurrin.
"However, the steep rises in house prices also mean that houses remain unaffordable for many. There are many house hunters who have been struggling to get onto the property ladder for many years and for whom ownership of a home has become a pipe dream."
