Waterford sees sharp rent increase as supply at crisis level

The average rent in Waterford City for the last period of 2021 was €1,191, up 11.3% on the previous year.

This marks the sharpest percentage increase of all the cities in Ireland, according to the latest Daft report.

Rents in Waterford county were on average 13.2% higher year on year, for the same period. The average listed rent is now €1178, up 104% from its lowest point.

Across Munster, rents rose 10.2% year-on-year, reflecting very low availability. Just 139 homes in the province were available to rent on February 1st, the lowest on record.

Nationwide, rents in the final quarter of 2021 were an average of 10.3% higher than the same period in 2020.

The average monthly rent nationwide between October and December was €1,524, up 3% on the first quarter and double the low of €765 per month seen in late 2011.

The Daft report says the sharp increase in rents around the country "reflects a worsening of the unprecedented scarcity of rental homes."

Nationwide, there were just 1,397 homes available to rent on February 1st, a new all-time low since reports began in 2006.

Outside Dublin, supply improved marginally between November and February. However, with just 685 homes to rent, availability is less than one third of the pre-pandemic level of February 2020 and one twentieth the level seen a decade ago.

Commenting on the report, Ronan Lyons, Associate Professor of Economics at Trinity College Dublin and author of the Daft Report, said:

The strong rebound in economic activity, as public health restrictions relax, has translated into a strong demand for rental accommodation. Coming at a time of very weak rental supply, this has pushed rents up further, with inflation at its highest rate nationwide since early 2018. The number of live rental ads is at its lowest ever on record, with fewer than 1,400 live ads on February 1st.

New developments won't do enough

The Daft report says figures for a further 12 developments coming on stream in early 2022 suggest brisk take-up of new homes. Even if the 1,700 homes due to become available in the first half of 2022 were added to the existing stock of rental ads, the number of homes available to rent in Dublin now would be below the level seen a year ago.

The report suggests the solution remains in the construction of large numbers of houses to cater for tenants of all incomes. "Reform of rent controls would also enable new rental homes to be absorbed faster,” Ronan Lyons added.