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Rents rising nationally but marked slowdown in Dublin

By November 14, 2023No Comments

Rents being sought for properties on the open market nationally are continuing to increase, but there has been a continued slowdown in the rate of increase in Dublin, according to the latest Rental Report.

Rents on the open market are now 8% higher that they were a year ago, with the average market rent nationally in the third quarter standing at just under €1,825 per month.

That is almost two-and-a-half times the average rent of €765 per month at the low point of the market in late 2011.

The rate of increase in the three month period to the end of September was 1.8%, the report shows.

However, there are disparities apparent in the overall market with a noticeable difference between trends in the Capital and elsewhere for the third quarter in a row.

In the Dublin market, rents rose by just 0.4% quarter-on-quarter and by 1.3% since the start of this year.

Outside of the capital, the average increase between June and September was 3%, and rents are now 9% higher than the start of the year.

All four major cities outside Dublin – Cork, Limerick, Galway and Waterford – saw significant quarterly increases in rents, of at least 5% quarter-on-quarter.

Outside the cities, quarterly increases ranged from 1.8% in Leinster to 3% in Munster.

The changes are being driven by differing trends in the availability of rental accommodation, with a marked improvement apparent in the Capital.

On 1 November, there were almost 1,800 homes available to rent nationwide, compared to fewer than 1,100 on the same date a year ago.

Of the increase of almost 700 homes, Dublin accounted for over 600 of those.

“Between 2018 and 2022, a significant pipeline emerged of new rental homes in Dublin. A steady flow of these homes, especially since 2022, has eased the very tight market conditions that had emerged after covid19 lockdowns,” Ronan Lyons, Associate Professor of Economics at Trinity College Dublin and author of the report said.

“While most of the rest of the country is still experiencing double-digit inflation, market rents in Dublin are now close to static.

“High construction costs – and uncertain financing – has meant that viability is a challenge outside the capital. But the solution to high rents remains the construction of large volumes of new rental housing around the country. Given viability challenges, it is likely that policy supports will be needed,” he added.

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