Revealed: County-to-county rent increases, with just 1,000 homes available for rent statewide

An extreme shortage of rental properties is being blamed for a record rise in housing costs.

Rents for new leases soared 14 percent in the three months to September from a year earlier, according to a report by Daft.ie.

The nationwide average rent for a new lease is now 1,698 euros per month. That is more than twice as much as in 2011 with 764 euros.

The national annual inflation rate of 14.1 percent is the highest ever recorded in the Daft.ie report since its inception in 2006. There were just 1,087 apartments available for rent across the country earlier this month.

This is a quarter less than at the same time a year ago and about a quarter less than the average availability in the period 2015-2019.

Rental costs in Dublin were about the same as across the country, but in Cork the rate of increase is slightly slower at 12 per cent.

However, it was higher in the cities of Galway, Limerick and Waterford, ranging from 16.4 per cent in Galway to 17.4 per cent in Waterford.

Outside the cities, the average annual increase in market rents was just under 14 percent.
Daft.ie report author Ronan Lyons said the rise in market rents across the country was due to exceptional shortages in rental housing availability.

Rents in Dublin now average €2,258 per month.

In Cork the monthly rent is over 1,700 euros, in Galway it is similar.

Renters in Limerick city looking for a new lease can expect to pay €1,600 a month, with an estimated cost of €1,357 in Waterford and €1,318 elsewhere in the country.

The figures are asking prices for new leases.

A separate section of the Daft.ie report shows that average rents paid by long-term tenants have increased by 2.5 percent over the last year.

Since the introduction of rent pressure zones in 2016, tenant rents have increased by an average of 17 percent, compared to an average increase in open market rents of almost 75 percent over the same period, Prof Lyons said.

He said: “The compelling evidence of the rental market in Ireland over the last two decades – and again confirmed in very clear terms in recent months – is that at any given level of rental demand, the best antidote to high rents is supply.”

The economist, who is Associate Professor of Economics at Trinity College Dublin, said the collapse in the number of apartments for rent over the past 18 months has put huge upward pressure on rental costs.

“This has been confirmed by these latest figures, which show record-breaking quarterly and annual increases in market rents, despite already very high rents,”
he said.

Government policy recognized a few years ago that the supply of new rental housing is crucial to overcoming the shortage.

However, there are signs that the government is planning to scrap the build-to-rent planning classification, often referred to as the cuckoo fund, i.e. pre-financing rental housing.

Prof Lyons said the built-to-rent scheme has helped generate a pipeline of tens of thousands of new rental homes now coming into service, which represent the best hope of alleviating chronic shortages in the rental market.

If this system works, policymakers must have a clear plan for how tens of thousands of new rental homes will be delivered in all major cities and towns this decade, he said.

The Economic and Social Research Institute recently said high rents are pushing young people to the brink of poverty.

One report found that a third of people living at the poverty line work full-time and have a college degree.

https://www.independent.ie/business/personal-finance/property-mortgages/revealed-county-by-county-rent-increases-with-just-1000-homes-available-to-rent-countrywide-42162694.html Revealed: County-to-county rent increases, with just 1,000 homes available for rent statewide

Fry Electronics Team

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