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Dublin: 3°C Sunday 27 September 2020

How many new homes does Dublin need to stop the rental crisis?

Demand in the capital has grown while supply has slowed.

Image: Shutterstock/Katarzyna Wojtasik

A NEW REPORT from Daft.ie released earlier this week brought more alarming news for renters around the country.

Rents were found to have increased by 9.7% in the final quarter of 2014 when compared to the same period the year before.

This did however come as part of a slowing trend in rental inflation – with rents in the previous quarter being 10.8% higher than in the same period in 2013.

One big issue identified in the report was demand continuing to outstrip supply in the nation’s capital. This has seen rents rise close to their 2007 peaks.

average rents Source: Daft.ie

Click here to view the large image in the Daft Rent Report.

Supply issue 

Dublin’s population is growing at a rate of 10,000 households a year while its stock of housing is increasing by only 1,500 units a year. According to the new report – only 34,000 properties were listed for rent in 2014 – a drop of 13% from 2013 and 40% less than in 2011.

Rental stock is running low nationally as well. On the first day of this month, there were only 5,200 properties available to rent across the country – fewer than at any stage since August 2007.

What’s needed? 

For supply to be met in Dublin an additional 8,500 new properties need to be built every year.

At the end of the third quarter of 2014, a study by the Society of Chartered Surveyors Ireland found that Dublin is in need of 35,000 new homes between now and 2018 to come close to meeting demand.

The study also found that while planning had been approved for 26,000 new homes – this would still result in a shortfall of 9,000 units.

Speaking to TheJournal.ie this week, author of the Daft.ie report and Assistant Professor of Economics at Trinity College, Ronan Lyons, suggested introducing denser housing in the capital as a potential solution to the rent crisis.

Note: Journal Media Ltd has shareholders in common with Distilled Media Group.

Read: The figures are in: Are you paying above average for your rented property?

Also: Buying or renting? Which should you be doing?

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