Rents in the capital have stabilised but elsewhere continue to increase – with the average listed monthly cost now €1,823.
According to property website Daft.ie the increase in rents reflects low availability, with fewer than 200 homes available on November 1. That has risen on a year ago but is still well below the levels seen in the late 2010s.
Nationwide, market rents in the third quarter of 2023 rose by an average of 1.8 per cent, compared to the second quarter. Relative to a year ago, rents in the open-market are now 8 per cent higher, with the average market rent nationwide in the third quarter just under €1,825 per month.
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This compares to a low of just €765 per month seen in late 2011. Outside Dublin, the average increase between June and September was 3 per cent, and rents are now 9 per cent higher than at the start of the year.
All four major cities outside Dublin; Cork, Limerick, Galway and Waterford, saw significant quarterly increases in rents, of at least 5 per cent quarter-on-quarter.
Associate Professor in Economics at Trinity College and author of the Daft.ie report Ronan Lyons said increased supply of properties in Dublin has led to static rents but outside the capital rents are still rising. He said: “Between 2018 and 2022, a significant pipeline emerged of new rental homes in Dublin.
“A steady flow of these homes, especially since 2022, has eased the very tight market conditions that had emerged after Covid-19 lockdowns.
“While most of the rest of the country is still experiencing double-digit inflation, market rents in Dublin are now close to static. High construction costs and uncertain financing, has meant viability is a challenge outside the capital. But the solution to high rents remains the construction of large volumes of new rental housing around the country.
“Given viability challenges, it is likely that policy supports will be needed.”
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