Rental prices hit a new all-time high as supply falls to an all-time low

Rent increases are at an all-time high, with supply at its lowest level since Daft.ie began keeping records in 2006.

Housing costs shot up 12.6 percent in the three months to June compared to the same period last year, according to Daft.ie’s housing survey.

This is the highest rental price inflation since Daft began compiling the rental index 16 years ago.

The average monthly asking price reached €1,618 due to a chronic supply shortage as small landlords are leaving the market in droves.

As of August 1, only 716 apartments were available for rent.

The average monthly asking price for a new rental apartment in Dublin is now €2,170.

The survey includes the asking prices for new leases. Most of those in existing rental homes will not have had the same rate of increase.

However, according to Daft.ie, rental prices have increased by 3.3 percent in the first three months of the year.

Annual rent inflation of 12.6 percent is higher than the previous peak of 11.8 percent recorded in late 2016. Figures released this week show small landlords are exiting the market in record numbers.

The number of landlord-to-tenant evictions reported to the Residential Tenancies Board (RTB) skyrocketed 58 percent in the first six months of 2022.

Most intend to sell. Rising interest rates, high house prices, and complaints about regulations and taxes are cited as reasons for the sale of many smaller landlords.

Daft.ie said as of Aug. 1 there were only 716 homes available for rent across the state.

Close

Rents continue to rise as supply dwindles. Photo: Getty Images/iStockphoto

Rents have more than doubled to €1,618 per month from a 2006 low of €765.

Dublin recorded a 12.7 per cent annual increase in rental prices in the second quarter. This is above the national average for the first time since 2018. Cork, meanwhile, recorded an annual price increase of 11.8 percent. Galway has seen prices rise by 16.4 per cent, with Limerick asking prices up 17.7 per cent.

Outside of cities, average annual increases increased by 12 percent.

Ronan Lyons, author of Daft.ie’s Rents Report and associate professor at Trinity College, said the housing shortage over the past year has been unprecedented. The number of 716 apartments available for rent as of Aug. 1 was down from nearly 2,500 a year ago.

And it’s a new all-time low since Daft took stock of rental supply in 2006.

Rental availability has fallen by almost 100 percent since 2009.

Prof Lyons said: “A resurgent economy over the last year has exacerbated Ireland’s chronic shortage of rental accommodation.

“While the professional rental sector has added over 7,000 new rental homes over the past five years, this compares to the decline of 30,000 rental listings per year in the traditional rental sector over the same period, or the decline of 100,000 listings per year since 2012.”

Close

Figures released to Eoin Ó Broin by Sinn Féin show that 1,781 tenants were served with eviction notices between April and June this year. Image: Gareth Chaney/Collins

He said the shortage of rental housing translates directly into higher market rents and this can only be addressed through increased supply.

Prof Lyons said nearly 115,000 proposed rentals are in the pipeline but these are concentrated in the Dublin area.

“While almost 23,000 are under construction, the remainder are at an earlier stage and the proliferation of legal challenges for new developments poses a threat to tackling the rent shortage.”

Monthly rent in Dublin is up 12.7 percent to €2,170, Daft.ie said.

The average asking price in Cork is €1,670 and in Galway €1,663. Average asking prices in Limerick are €1,600 and in the city of Waterford €1,312.

In the rest of the country, the average annual rental price has risen by 12 percent to €1,255.

Figures released by RTB for Sinn Féin’s Eoin Ó Broin show that 1,781 tenants were served with eviction notices between April and June this year – more than double the number for the same period last year (841).

Mr Ó Broin said that “a chronic shortage of social housing” coupled with the growing number of private landlords exiting the market “is driving the homelessness crisis”.

Focus Ireland is also calling for urgent government action in the budget to curb landlord exodus from the market. It has proposed a system that would allow landlords to build up significant tax breaks on their income if they commit to staying in the market.

Advocacy Director Mike Allen warned that without such a system, “the level of homelessness will continue to increase as the capacity of homeless organizations to deal with it.”

https://www.independent.ie/business/personal-finance/rental-prices-hit-a-new-all-time-high-as-supply-plummets-to-its-lowest-ever-level-41901754.html Rental prices hit a new all-time high as supply falls to an all-time low

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button