House prices could drop by 12% if output increases by 10,000 - ESRI

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House prices could drop by 12% if output increases by 10,000 - ESRI
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House prices could fall 12% if output increases by 10,000 units, an ESRI paper has found.

House prices could drop by as much as 12% if housing output increases by 10,000 units a year., which found that increasing output would not necessarily lead to significant wage inflation in the construction sector.

"It's a basic fact I suppose that if you do increase the supply of housing, and keep everything else constant, then house prices will fall - there's no doubt about - but this is over quite a long period of time. A general view of construction work on an affordable housing scheme in Dublin. Picture by: PA Images/Alamy

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