What should an average person earn to afford to live in Laois?

According to the Government’s Housing Agency, it is recommended to spend no more than 35% of monthly earnings on housing, with the ideal amount being below 25%. Currently, we are facing both a housing crisis and a cost of living crisis- available rentals are few, and the prices of properties for sale are through the roof.

So, what are the current costs of buying and renting in Laois, and what must you earn to afford to? 

At the time this article was written, there were 161 houses available to buy in Laois, with 15 apartments available. Not including the 28 soon to be available Cost Rental Homes from the County Council, there are 9 apartments and 6 houses available to rent. 

Here is a breakdown of Laois’s current housing market according to DAFT.IE;

On Rent.ie, there were 35 single rooms in houses available for long-term rental in Laois. The average of these lettings came in at €560 a month.

The room with the highest price came in at €1,100 a month, with the lowest only €360 a month.

Let’s match these figures with the current social and economic state of Laois.

Data from the Central Statistics Office (CSO) tells us that Laois has one of the lowest levels of disposable income in the entire country, with ours coming in at 11% below average counties- just €400 above that of Donegal, which is considered the most disadvantaged county in Ireland.

We have the youngest population in the country, at an average of 37 years of age, and the highest rate of youth dependency in households. Though we evidently have the most parents in the country, over 41% of people aged 18-34 are still living at home.

How do these figures compare with the current cost of living crisis?

According to Numbeo’s figures for May 2024, an Irish family of four spend an estimated €3,436 a month, excluding rent.

A single Irish person’s estimated monthly costs are €982 excluding rent.

The most recent data we have on yearly earnings is the 2022 Census, where the average wage in Laois was listed as €46,560. In comparison, Kildare was €55,861, Kilkenny was €46,510, and Offaly was €44,108.

Let’s consider all of this information and apply it to an average person renting in Laois;

A 30 year old single person without children living in Laois is earning €30,000 gross, €26,000 net per annum, with a monthly earning of €2,166 (€541 per week). They spend €982 a month on utilities, food shopping and fuel. They are left with €1,184 to pay €975 rent on a one bedroom apartment. The person is left €209 a month to cover sundries such as clothing, potential loans, unexpected expenses and emergency funds. 

This person's rent is over 45% of their monthly salary, without the consideration of added costs from potential youth dependents, higher insurance premiums or lifestyle choices. 

Laois County Council’s new Cost Rental Home scheme is allegedly 27% below the average market. How would these figures compare if the same 30 year old rented one of the Council’s one-bedroom apartments for €944 per month?

Their monthly earnings are €2,166, and they spend €982 a month on utilities, food shopping and fuel. They are left with €1,184 to pay €944 rent on a one bedroom apartment. The person is left €240 a month to cover sundries such as clothing, potential loans, unexpected expenses and emergency funds.

In this instance, the person's rent is over 43% of their monthly salary, while the Government recommends affordability of no more than 35%, ideally under 25% to live comfortably.

In this housing crisis, it is rare to find a property that is worth less than 25% of your monthly income. If it were the case, to comfortably afford a one bedroom apartment for €975 per month, you would need to earn that per week, with a monthly income of €3,900.

In comparison, here is a breakdown of median weekly earnings in Laois by job sector;

CSO 2022- Median earnings by job sector in Laois.

According to the CSO, the population of Laois has risen to 91,877, an increase of 8% from April 2016 to April 2022. The demand for housing is increasing in turn, and there is no sign of the prices decreasing anytime soon.

With many Laois residents living paycheck to paycheck, where are we supposed to live, and how can we afford to in this economy?