New home buyers are now paying almost eight times their average income to purchase a house.
This is the largest gap between house prices and an average salary in over a decade.
The latest house price report from property website MyHome.ie found that the average home sale in the third quarter of 2022 was €370,000.
That is 7.7 times the average income of €48,000.
Report author and chief economist at stockbrokers Davy is Conall MacCoille, who believes valuations could change with the Central Bank changing lending rules:
"Effectively for the past five, six years the Central Bank has kept households in check. Stopping them taking on high levels of debt and held back house prices.
However, the Central Bank lending rules have changed meaning prospective buyers can borrow four times their income, as opposed to three-and-a-half times their income as it was previously.
Conall MacCoille believes that will result in a change, he said " that's likely to drive up or add momentum to house price inflation.
"I think as you go through the year, the central bank itself has estimated the change in the rules could add 8% to house prices."