Net wealth of households hits record high - Central Bank

Irish households have amassed record wealth, according to a Central Bank report, but the trend may be slowing and income disparities persist. The Irish Household Wealth report for Q1 2026 revealed that total household net wealth reached an all-time high of €1.429.5 billion, marking a 4% increase in the first quarter. This surge is primarily driven by ongoing house price growth, which now stands 26.5% above the peak reached during the property boom in April 2007.

Housing wealth comprises 66.1% of total net wealth and 59.5% of the total assets held by Irish households, a significant jump of €14.1 billion over the quarter, largely due to revaluations. However, the report cautions that this wealth growth may not persist. While Ireland's economy performed well last year, analysts predict a decline in growth for 2026, and recent CSO data shows the Irish economy contracted by 1.6% between June 2025 and June 2026.

Managing Director of WealthPlan, Bryan Harvey, notes that rising unemployment and increasing living costs could quickly diminish disposable income and hinder wealth accumulation for some families. The report also highlights the stark inequality in wealth distribution, with the wealthiest 10% of households controlling 47.2% of total household wealth, totaling €693.1 billion.

Wealth advisor Sarah McGurrin of NFP Ireland observes that many households, particularly those without property ownership or still saving for the property market, will not see significant benefits from the wealth surge. The wealthiest 10% exhibit a more diversified asset portfolio and lower leverage, while the bottom 10% rely more on deposits and have higher debt-to-wealth ratios (27.1%).

The Irish Gini coefficient, a metric for wealth inequality, remains 62.9, well below the euro area average of 73.1 and comparable to other European countries, having consistently remained below this threshold since 2013. The household debt-to-assets ratio decreased to 9.6%, with loan amounts increasing marginally to €153.1 billion, and the debt-to-income ratio for Irish households also slightly dropped to 80.3%.