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RENT PRICES ARE now two thirds higher than at the peak of the Celtic Tiger in 2007, according to a report by Daft.ie.
The report found that in the 12 months to September rents have risen by 4.3% while supply has decreased.
In the past year the number of homes available for rent in the country reduced by over one fifth.
It comes as the Government’s long-awaited new housing plan goes to Cabinet for approval today.
The exact details of the plan will be released Thursday but some of its aims are to create 12,000 new social homes and carry out more compulsory purchase orders of derelict houses.
Ronan Lyons, author of the report and professor in Economics at Trinity College Dublin, said “significant amounts of new rental supply” nationally is what’s needed to stop rent prices from increasing further.
“The picture remains unchanged – this is a market starved of supply,” he said.
On 1 November, there were a total of just 1,901 homes for rent nationwide, down 21% from November 2024. There is less than half (44%) the number of properties available to rent now as there was in between 2015 to 2019.
In Dublin, the number of homes to rent is down by almost one third. Outside of the capital, supply is tightest in Cork, Galway, Limerick, Waterford, and Connacht-Ulster.
Inflation is roughly in line with the average rate seen over the last two years and well below the peak of 13.3% seen three years ago.
But market rents are now one third above pre-Covid levels, with the average monthly rent for a two-bedroom apartment nationwide, between June and September standing at €2,080.
The increase in prices since Covid has been uneven across the country, it’s increased by 18% in Dublin but 76% in the Connacht-Ulster region.
Rental inflation is lowest in Dublin where prices have risen by 2.7% compared to 4.3% nationally.
In comparison, Waterford city has seen the highest increase with rents up 11.4% year on year. Inflation in Cork city is also on the rise with rents up 9.3%.
Speaking on the findings, report author Lyons said: “Rents are now one third higher than they were just over five years ago and indeed two thirds higher than their Celtic Tiger peak.”
“The easing off of inflation – from over 13% in 2022 to 4.3% now – has been welcome. However, the sharp fall in availability of homes to rent suggests that any further pressure on rents over the coming quarters will be upwards.2
“While it will take years, significant amounts of new rental supply – all around the country – are required to change conditions in the rental market.”
In light of the figures Sinn Fein TD Eoin Ó Broin has criticised the Government and its new housing plan.
“The latest Daft.ie rent report shows rents continuing to spiral out of control,” he said.
“There is no indication that the long overdue housing plan will actually increase the social and cost rental targets for Local Authorities, Approved Housing Bodies or the Land Development Agency.”
Separately, it’s emerged EU officials have begun the process of planning for a major summit on housing to be held next year. Speaking at the EU Commission building in Brussels yesterday, an official said it was planned the meeting of heads of government from across the bloc would be held at some stage in 2026 – with a date yet to be set.
The commission, which is the executive of the EU, has vowed to take on a leading role in tackling the housing crisis, with President Ursula von der Leyen stressing last month that addressing affordability would be a key priority.
More details on new EU rules cracking down on short-term letting websites like Airbnb and Booking.com are expected in spring of next year.
The EU’s first ever housing commissioner, Dan Jørgensen, said recently that policymakers needed to take the issue of housing seriously and acknowledge it was a “social problem” - adding that Brussels had so far failed to deliver on tackling some key elements of the housing crisis.
Additional reporting from Daragh Brophy in Brussels
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.
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