The number of homes available for rent across Ireland has fallen to an « all-time low » driving up prices further across the country, according to Daft.ie.
In its most recent quarterly rental report, the property ad site reports that there were only 1,460 homes available for rent on November 1. This is the lowest amount since Daft began tracking availability in January 2006.
The amount available now is nearly half the previous lowest amount recorded in mid-2019.
In Dublin, there were only 820 properties available for rent, which was a 51% drop on the same date last year, and for the first time, since Daft started its data set, the capital’s rental inventory has fallen below 1,000.
This has resulted in rental rates in Dublin increasing by 2.7% year over year.
The increases were sharper across other cities, with an annual jump of 6.9% in Cork, 8.3% in Galway, 8.9% in Limerick and 10% in Waterford.
The national average rent is now €1,516 per month. This is up 6.8% and marks the 36th consecutive quarter where rents are higher than in the previous twelve months.
Excluding cities, the average rent across the country is €1,153, an increase of 11.9% from last year. In May, Roscommon and Leitrim’s rents were up more than 20% year over year.
Record levels of inflation were recorded throughout Connacht, Ulster and Münster. Stocks were also at a record low across all counties with only 236 homes available for rent in Münster, 232 in Leinster (outside Dublin) and 172 across Connacht and Ulster.
The Daft report notes that the increase in rents « reflects an ongoing and unprecedented scarcity of home rentals ».
“Covid-19 has temporarily adjusted Ireland’s rent problems, but recent numbers confirm that these shortage problems are getting worse over time,” said Ronan Lyons, economist at Trinity College Dublin and author of the report.
While some argue against the construction of a large number of purpose-built rental homes, any solution to Ireland’s chronic rental home shortage must include the construction of new homes.
« In this respect, the pipeline to nearly 45,000 new homes built to rent – with its concentration in the Dublin area – is particularly welcome. »
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Lyons concluded: “More than 50,000 additional rental homes have been proposed. Their construction will help improve the availability and affordability of rental homes, something that policy makers and planners must consider.”
In a statement, the Institute of Professional Auctions and Appraisers (IPAV), said the latest report shows « a severe and dwindling shortage of rental properties to meet demand. »
« While there is such a low level of equity, rents will still be high, » said Pat Davitt, CEO of IPAV.
“We have some expert opinions warning of the risks associated with rent controls. We believe that more rent controls are not the answer but increase the supply of homes for rent and purchase. This is critical from a social and economic perspective.”
The full Daft.ie report can be found Here.
Note: Journal Media Ltd has joint shareholders with the Distilled Media Group, publisher Daft.ie.