The affordability of houses and apartments can vary dramatically according to where an individual is located on the housing ladder, according to the Economic and Social Institute (ESRI).

A note contained within the ESRI's latest Quarterly Economic Commentary finds that while housing has become more affordable for existing homeowners over the past few years, it has moved further out of the reach of those who have yet to buy into the market.

Mr David Duffy, who researched the note, said affordability can be measured either by considering a homeowner's ability to repay mortgage debt or by looking at access to the housing market.

He concludes that while the reduction in interest rates that began after the Republic joined EMU has improved affordability for existing homeowners, the situation has been less positive for would-be householders. This is because the cost of accessing the market has risen with house prices and consumers have effectively been priced out of the market.

Another note in the commentary concludes that property affordability can be more of a problem for those in the rental sector than for those who own property. The paper, by Prof Tony Fahey of the ESRI, finds that private tenants pay more for their housing each month than first-time buyers do.

Mr Duffy acknowledged that affordability was likely to diminish over the course of the next year and a half both for those in the market and those seeking to enter it as interest rates, and thus the cost of mortgages, move up.