Affordable housing and DC pensions: What Irish savers think

The below is an extract from our new report breaking down what Irish savers think about their pension providers investing in affordable housing. Click here for the full report.

The availability of affordable housing has become a critical issue in Irish society. As a leading pension provider and real estate investor, we believe DC schemes can play a significant role in addressing the housing crisis. As part of this survey, we wanted to find out what they thought about affordable housing, both nationally and in their local areas. Read on to find out more.

Our survey methodology

An online survey was conducted with 583 pension savers in May 2025, by Ignition House on behalf of L&G. The survey population included individuals in accumulation and decumulation stages, across different generations and both homeowners and renters.  

Affordable housing refers to homes for sale or rent that are priced below market rates to help people whose needs aren’t met by the private housing market. 

1: How serious is the lack of affordable housing to rent across Ireland?

The issue of affordable housing to rent is perceived as a critical concern by 56% of respondents across Ireland: a stark contrast to the 28% who view it similarly in the UK. This sentiment transcends gender and generational lines, though notable differences emerge when analysed by age group. Specifically, 65% of individuals aged 22-34 consider it a critical issue, compared to 50% of those aged 35-44 and 53% of those aged 45-54.

We also observed a significant disparity between renters and homeowners, with 62% of renters identifying affordable housing as a critical issue, in contrast to 50% of homeowners. Overall, an overwhelming 89% of respondents perceive it as a critical or very serious issue, compared to 70% in the UK.

When we asked our respondents to consider their local area, the problem is slightly less pronounced, yet still significant. Here, 41% of respondents view it as a critical issue, and 79% consider it very serious or critical. Renters again express stronger concerns, with 56% identifying it as a critical issue in their home neighbourhoods, compared to 29% of homeowners.

2: Has the availability of affordable housing to rent got better or worse over the past few years?

The perception of the availability of affordable housing to rent in Ireland has significantly deteriorated, with 76% of respondents indicating that the situation has worsened, compared to 62% for the UK. This sentiment is more pronounced among women, with 85% expressing this view, compared to 69% of men. Interestingly, there is no significant difference when considering gender, generation, or tenure.

Age-wise, the most affected group is those aged 55-64, with 92% stating that the availability has worsened, compared to 75% of those aged 22-34 and 70% of those aged 35-44.

When focusing on respondents’ local areas, the patterns remain consistent. Here, 74% of respondents believe that the availability of affordable housing to rent has worsened. Women again express stronger concerns, with 80% feeling this way, compared to 68% of men.

In summary 

Ireland continues to face a deepening housing crisis, driven by a severe supply shortage, rising rents, pressure on household incomes and increasing homelessness and migration issues.

For asset managers and pension providers, there is window of opportunity to deploy investor capital towards creating homes for those most in need. 

We believe the sector has as a rare opportunity to help drive both financial returns for pension savers and meaningful social impact. In our view, the sector has the potential to generate inflation-linked income and long-term gains, while playing a crucial role in addressing the housing crisis. 

Assumptions, opinions, and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass.

Key Risks

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested. Past performance is not a guide to future performance. The details contained here are for information purposes only and do not constitute investment advice or a recommendation or offer to buy or sell any security. The information above is provided on a general basis and does not take into account any individual investor’s circumstances. Any views expressed are those of L&G as at the date of publication. Not for distribution to any person resident in any jurisdiction where such distribution would be contrary to local law or regulation.

Legal & General Investment Management Ltd. Registered in England and Wales No. 02091894. Registered office: One Coleman Street, London EC2R 5AA. Authorised and regulated by the Financial Conduct Authority.

In the European Economic Area, this document is issued by LGIM Managers (Europe) Limited, authorised and regulated by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) and as an alternative investment fund manager (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (as amended). LGIM Managers (Europe) Limited’s registered office is at 70 Sir John Rogerson’s Quay, Dublin, 2, Ireland and it is registered with the Irish Companies Registration Office under company no. 609677.

2025 Legal & General Investment Management Limited, authorised and regulated by the Financial Conduct Authority, No. 119272. Registered in England and Wales No. 02091894 with registered office at One Coleman Street, London, EC2R 5AA.