Irish Regional Cities See Growth Driven by Housing Costs and Remote Work
Dublin's rising housing costs are pushing workers to Ireland's regional cities, supported by remote work and government investment. Economist Jim Power and Eurofound's Marie Hyland confirm this trend, noting better affordability and quality of life in regions. Relocation firms like Cronin Group see strong demand, with regional employment growth becoming a key economic priority.
Rising housing costs in Dublin are driving a significant shift towards Ireland's regional cities, fueled by remote work and targeted investment. Economist Jim Power notes that Dublin's unsustainable housing prices push younger workers to seek affordability in regions, with many opting for alternative work rather than returning to the capital's commute.
IDA Ireland's 2025 investments show 57% in regions, indicating a trend of higher-quality job creation outside Dublin. The government supports this with an €18 million investment in 40 projects under the Smart Regions Enterprise Innovation Scheme, aiming to strengthen regional enterprise and sustainable growth.
Eurofound research officer Marie Hyland highlights persistent rural-urban economic gaps across the EU, but notes rural areas offer more affordable housing. Only 6% of rural households were overburdened by housing costs, compared to 9% in urban areas, and rural residents are more likely to own larger homes with less pollution and crime. Europe's housing affordability crisis is concentrated in cities, making urban housing largely unaffordable for those on a median wage, particularly in countries like Ireland, where over 80% of a median wage is needed to rent a standard two-room apartment in cities.
Relocation specialists Cronin Group report strong demand for services in regional cities like Cork, Galway, Kilkenny, and Waterford. Clients cite Dublin's housing shortages and competition, seeking improved affordability and lifestyle balance. Hybrid and remote work, alongside regional investment in tech, pharma, and medtech, further drive this decentralization. Power emphasizes that growing regional employment must remain a priority for economic, social, and environmental reasons, envisioning regional towns as future centers of excellence in sectors like medtech and fintech.