New data from Daft.ie reveals a significant increase in average rent prices across the country, rising by 7.3% between April and June compared to the same period last year. The average monthly rent now stands at €1,922, representing a 41% increase since the onset of the Covid-19 pandemic.
Compared to the first quarter of 2024, rents have increased by an average of 2%, marking the 14th consecutive quarter of rising rental costs nationwide.
The report highlights a disparity in rent inflation between Dublin and other parts of Ireland. In Dublin, the average rent reached €2,427, a 3.5% increase from a year earlier. This contrasts sharply with the 10.6% average increase seen in other regions of the country. Limerick City experienced the most dramatic rise, with rents surging by 21% year-on-year. Galway and Waterford also saw significant increases, with rents up 13% and 10% respectively.
Ronan Lyons, Associate Professor of Economics at Trinity College Dublin and author of the report, noted that the slow-down in inflation observed between mid-2022 and mid-2023 was largely confined to Dublin. This deceleration was attributed to the construction of a substantial number of new rental homes in the capital. However, this trend did not extend to other cities, where rental inflation remained high.
The report also underscores a persistent shortage of available rental properties across the country. As of August 1, there were just over 2,200 homes available to rent, unchanged from the previous year and half of the average availability from 2015 to 2019.
Lyons expressed concern about the stalled improvement in rental availability, even in Dublin. He warned that without a significant increase in rental supply, pressure on rents is likely to continue, exacerbating affordability issues for those with regular incomes.
“Policymakers must first develop a comprehensive understanding of rental supply dynamics and then devise a detailed plan to substantially increase rental supply in major markets over the coming years,” Lyons emphasized.
The latest findings reveal the ongoing challenges in the rental market and highlight the need for effective policy measures to address the rising costs and supply shortages.
