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A new analysis from stockbrokers Davy shows that household wealth in Ireland has grown dramatically over the past decade, more than doubling between 2014 and 2023. Total household wealth is estimated to have risen from €573 billion to €1.32 trillion during that period, and projections suggest it could reach close to €2.6 trillion by 2035 if current trends persist.

Davy describes this upward trajectory as a strong rebound following the global financial crisis. However, the report also stresses that the bulk of this increase comes from rising residential property values rather than broader, more diversified sources of wealth.

Wealth Growth Heavily Dependent on Housing

The study notes that while non-property assets have grown in both absolute and relative terms, they have not kept pace with the wider performance of the Irish economy. According to Davy, this gap highlights an ongoing issue: many households are not managing their financial resources as effectively as they could. This includes low levels of retirement planning and slow growth in the value of domestic business ownership.

Although savings rates are broadly in line with eurozone averages, the report suggests that households are not making the most of opportunities to grow their financial assets. Under-investment, risk aversion and insufficient engagement with long-term planning tools such as pensions all contribute to weaker-than-expected financial returns. Davy estimates a private-sector pension deficit of around €250 billion in 2024.

Wealth Distribution and Long-Term Outlook

The report calculates that roughly 75,000 households in Ireland fall into the “wealthy” category out of a total of 1.9 million. For most families, however, priority areas remain the essentials: securing a home, building an emergency fund and setting up adequate pension coverage.

Despite the challenges, Davy’s outlook for future wealth growth remains optimistic. The expansion of the housing supply, increasing numbers of older households and a strong income base all support long-term momentum in overall household wealth.

Headline Wealth Figures Mask Underlying Vulnerabilities

Davy CEO Gavin Kelly noted that Ireland’s net wealth position is now among the strongest in the euro area, reflecting a decade of resilience and recovery. But he also emphasised that the composition of this wealth explains why many people do not feel financially secure.

A significant portion of household wealth is tied up in property or derived from valuation rather than active accumulation. When the family home is excluded and households ensure they have sufficient savings and pension contributions, the amount of investable wealth remaining is often far lower than headline figures suggest.

Kelly added that participation in pensions, investment markets and business ownership remains uneven, highlighting a continued need for improved financial literacy and long-term planning.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.