Ireland's quietly prosperous class is thriving despite the cost-of-living crisis. Who are they?

Ireland's cost-of-living crisis is real for many households. But alongside the hard-pressed households that dominate political language, a quietly prosperous class is expanding at the top of the earnings ladder.

Revenue's latest pre-budget figures estimate that 457,300 taxpayers, including single earners and jointly assessed couples, will earn more than €100,000 next year. That is more than twice the 206,500 recorded in 2020. The number earning above €150,000 is expected to approach 200,000, up from 80,000, while those earning more than €200,000 have risen from 41,000 to almost 109,000.

These figures include jointly assessed couples, so €100,000 is not necessarily a high income for a household. It is nevertheless a useful marker, particularly because earnings at that level can be needed to enter the housing market in many parts of Ireland. At the top, 50,000 taxpayers earn more than €275,000 a year. Their average income is €520,000, with average tax payments of €221,000, although millionaire earners may distort those averages.

The growth of this group reflects the arrival of better-paid jobs in the multinational sector and the professional services linked to it. Its spending supports high-end restaurants, luxury car dealerships, wealth management, premium beauty and health businesses, and large home renovations.

That prosperity also affects people outside the group. Higher earners have helped sustain the upper end of the housing market, particularly where housing supply is inadequate. An Economic and Social Research Institute study found Irish homes were 17 percent overvalued on average, a figure the article links in part to the purchasing power of higher earners. Once buyers accept higher prices, the article argues, housing can remain overvalued for a long time. The result is an economy where a minority is doing very well while others continue to feel the squeeze.