Lack of housing supply is causing rental inflation of 6.8% on average each year.
According to Daft.ie’s quarterly Rental Price Report, supply is at an “all-time low” in Dublin and elsewhere in the country, which is leading to price increases.
In Dublin alone, rental stock is down 51% compared to this time last year. There were just 820 homes available to rent, the lowest figure since Daft started compiling data in 2006.
Nationally, rents have increased by 2.6% in the third quarter of this year, with the average monthly rent now standing at €1,516 per month.
Tipperary fares better as the average monthly rent is €1,000, up 14.4% year-on-year.
In Munster, there were just 236 homes available to rent on November 1st, down from the pre-covid average of 750.
Ronan Lyons, Associate Professor in Economics at Trinity College Dublin, the report’s author says: “To make rental accommodation more affordable, we need to put in the hard effort of building lots of new rental homes.”
He added: “Without new homes, we will still be discussing unaffordable rents in five years.”