Leading economist John FitzGerald has called for “proper” taxation of property owners to address Ireland’s growing wealth inequality, as housing represents an unprecedented share of national household wealth.
Speaking on Newstalk radio, FitzGerald highlighted that homes account for almost 70% of Ireland’s net household wealth – significantly higher than the eurozone average of just over 60%. This concentration has created stark disparities as younger generations remain locked out of the housing market while property values soar.
The wealth gap has widened dramatically over the past decade, with the bottom half of the population seeing their share of housing wealth plummet from 25% to just 14% – a ten percentage point collapse that reflects the exclusion of younger buyers from homeownership.
“Wealth is very unevenly distributed in Ireland,” FitzGerald explained. “The top 10% of the population have one third of the housing wealth. And there are a lot of people who don’t have houses.”
Unlike other economies where wealth is diversified across stocks and shares, Ireland’s wealth concentration in property makes targeted taxation more straightforward. FitzGerald argued that property tax specifically targets those “lucky enough to own a house” and particularly affects wealthier households.
The Irish Times columnist acknowledged the current local property tax system is efficient in collection terms, with Revenue gathering funds for local authorities. However, he criticized successive governments and councils for failing to allow yields to rise alongside soaring house prices.
The economist’s intervention highlights growing concern about intergenerational wealth transfer and housing accessibility, as property appreciation benefits existing owners while creating barriers for potential first-time buyers.