DUBLIN—Ireland is set to end its three-year reliance on international aid at the end of this year, but that achievement will be of little immediate benefit to many Irish people trapped with home loans they will likely never be able to repay.

The painful legacy of the property market and banking collapse that forced Ireland to seek a €67.5 billion ($90 billion) bailout from the European Union and the International Monetary Fund has left house prices at nearly half their boom-time levels of 2007, according to official data published...