Average monthly rents in Ireland have effectively doubled since 2011, according to a new report from Daft.ie.
According to the new report’s figures, in the first quarter of 2021, rental prices outside Dublin soared to 7.1% higher than in the same period last year, costing renters an eye-watering €900 more annually.
Comparatively, rent costs in Dublin actually declined by 3.2% over the same period due to decreased demand. However, even with this slight decrease, average rent in Dublin remains painfully high at an average of €2,007 per month.
Nationwide, renting prices have almost doubled over the past decade, going from a low of €742 in 2011, to €1,443 during the first quarter of 2021.
The report also highlighted a crippling lack of rental supply – on May 1st, there were reportedly only 304 homes available to rent across the entire area of Cork, Galway, Limerick and Waterford.
Meanwhile, in Leinster, outside of Dublin, there were only 392 homes available – the second lowest figure on record (beaten only by February of this year). This data has been collected regularly since 2006.
According to the report, while housing availability has been lower than this in the past, May is usually a time of significantly higher supply.
The report’s author, TCD economist Ronan Lyons, goes on to argue that the undersupply of rental accommodation will be made worse by any moves to stop international investors from engaging with the sector.
“Limiting the country’s ability to harness foreign savings to build the rental homes it needs — for example, by limiting the ability of professional landlords to invest here — will worsen, rather than improve, the situation,” Lyons said.
“The doubling of rents over the last decade is all the proof needed that Ireland needs to build tens of thousands of new rental homes over the coming years.”
“So Ireland is going to solve the lack of rental supply by… wait, what…stopping professional landlords from coming into the market?”, Lyons tweeted.
So Ireland is going to solve the lack of rental supply by… wait, what… stopping professional landlords from coming into the market?
— Ronan Lyons (@ronanlyons) May 7, 2021
The researcher argued that “next-to-nothing has been built over the past 12 to 15 years” and urged the government not to “chase out pension funds seeking to build long-term rental homes here.”
Yet more evidence that the solution to Ireland's housing woes is lots more housing, incl/esp rental homes (where next-to-nothing has been built over the 12-15 yrs) – and definitely not trying to chase out pension funds seeking to build long-term rental homes here. https://t.co/gKMXh1LU88
— Ronan Lyons (@ronanlyons) May 11, 2021