- National rents have increased by 5.6% - the strongest year-on-year increase since mid-2019
- National rental supply hits an all time low with only 2,455 rental homes available across the country - this is lowest number on record
- There are less than 800 rental homes available outside Dublin
- Cities outside Dublin have seen significant price spikes. In Cork, Galway and Limerick cities, rents are between 9% and 10% higher than a year ago, while in Waterford, they are nearly 12% higher. Outside the cities, rents rose by 8.6% in Leinster, by 13.7% in Munster and by 14.7% in Connacht-Ulster
- With rental inflation ranging from -7% in Dublin 2 to +17% in Kerry, the current market exhibits greater spread (as measured by the variation in inflation rates across markets) than at any point in the last 15 years.
Commenting on the report, Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said:
“As the impact of Covid-19 on daily life begins to recede, the underlying issues facing Ireland’s rental sector are re-emerging. It is a sector facing unprecedented shortages, with extraordinarily tight supply: to give just two examples of many, there were just 15 homes available to rent in Waterford, city and county, on August 1st and only 8 in all of Offaly.
"Ireland’s rental sector has undergone a lost decade and half, with almost no new rental homes built. This cannot be solved by trying to regulate prices. It can only be solved by adding significant amounts of new supply – and not only in Dublin. In that regard, policymakers – and citizens – should be wary of anything that limits the ability of foreign savers to build new rental homes here.”
Average rents, and year-on-year change, Q2 2021
Dublin: €2,035, up 0.5% year-on-year
Cork city: €1,524, up 9.1%
Galway city: €1,443, up 9.0%
Limerick city: €1,337, up 9.8%
Waterford city: €1,136, up 11.9%
Rest of the country: €1,117, up 11.4%
