Limerick residents have the second highest disposable income in Ireland after Dublin, according to data from the Central Statistics Office (CSO).
According to the data, the average disposable income of people across Limerick city and county in 2021 was €25,190.
Disposable income is defined as the amount of money a person has left over after taxes, including social security contributions such as child benefits.
However, disposable income does not take into account factors such as rent, mortgage payments, and living expenses.
According to the latest Daft.ie rental report for Q3 2023, compiled in November, the average rent for a two-bedroom house in County Limerick is €1,464 per month.
This works out to be €17,568 in 12 months’ rent, meaning someone living alone in the county will be left with €7,622 in their pocket after rent and before other living expenses.
According to Daft.ie, the average rent for a two-bedroom house in the city was €1,864 per month or €22,368 per year.
When subtracted from the CSO’s disposable income figures, someone living alone in Limerick City would be left with just €2,822 after paying their annual rent.
As of January 2023, it is estimated that someone with an average monthly mortgage of €1,100 (or €13,200 over 12 months) would have a disposable income of just under €12,000 a year.
Given the increased cost of living due to energy and food inflation, and the real disposable income of people living in Limerick, it is likely to be much lower than the CSO figure.
Limerick Chamber of Commerce chief economist Shaun Golden told the Limerick Post that while it was good to see the county showing an increase in disposable income, the data was below current conditions.
“Firstly, it is great to see Limerick retain its top spot in terms of disposable income outside of Dublin and has grown even further from the previous year, especially as a result of the pandemic. Unfortunately, the data is two years behind where it is now. We can make inferences about the cost of living,” the economist said.
“For example, as part of Limerick Chamber of Commerce and Industry’s latest rental monitor, the price of a bed in Limerick amounts to 73 per cent of net income for individuals in County Limerick and 86 per cent of net income for city centres.
“This is a serious problem, especially when the generally accepted definition of affordability is one-third of net income. They are forced to share a house at a time when they want it.”
The chamber’s chief economist said: “More swift action is needed to bring state-owned land forward into paid rental and affordable housing, and the track record to date around key sites is not sufficient. “No,” he concluded.
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