Irish Property Market Rent Review
Market rents in the first quarter of 2023 were an average of
1% higher than in the final three months of 2022, the smallest increase since
2020.
The average market rent nationwide between January and March
was €1,750 per month, compared to €1,387 in the first quarter of 2020 and a low
of just €765 per month seen in late 2011.
There were significant regional differences in how rents
changed in the first quarter.
As in recent quarters, the upward trend market rents around
the country is driven by extraordinary shortages in the availability of rental
accommodation.
Nationwide, there were just 959 homes available to rent on
May 1st . While this is up 13% on the same date last year, it still represents
one of the three lowest totals for availability at the start of the month in a
series that extends back to the start of 2006.
Over the past two years, the private rental market has faced
growing challenges due to various factors. Initially, as society reopened after
the COVID-19 pandemic, followed by the war in Ukraine causing a refugee crisis,
the rental market experienced increased strain. There are indications that the
situation is not improving and may, in fact, be deteriorating. While the
availability of rental properties has stopped declining, it remains at
exceptionally low levels. Additionally, the rate of rent increase from January
to March was significantly smaller compared to the average growth observed in
2021 and 2022.
However, addressing the rental housing shortage in Ireland requires significant intervention from policymakers. Although the number of rental homes entering the market from newly built developments has remained steady in recent months, it is anticipated to decrease in the coming quarters unless issues regarding planning certainty and economic viability are addressed. Ultimately, policymakers must establish a clear plan outlining how tens of thousands of new rental homes will be delivered in all major towns and cities throughout this decade.
Average market rents, and year-on-year change, 2023 Q1
Dublin: €2,337, up 11.2% year-on-year
Cork city: €1,731, up 7.7%
Galway city: €1,772, up 11.8%
Limerick city: €1,645, up 10.8%
Waterford city: €1,399, up 10.8%
Rest of the country: €1,373, up 12.7%
