By Ted Healy of DNG TED HEALY

The recently published daft.ie Q3 rental market report shows that national average rents have increased by 6.7% - the strongest year-on-year increase since early 2019.

Munster rents are now 15.6% higher than a year ago, and the increase in rents around the country reflects an on-going and unprecedented scarcity of rental homes. Nationwide, there were just 1,460 homes available to rent on November 1, an all-time low in a series that extends back to January 2006. Indeed, the level of availability now is almost half the lowest level recorded between the start of 2006 and the outbreak of COVID-19, which was 2,706 in mid-2019. While Dublin had initially seen an increase in availability after the start of the pandemic, there were just 820 homes available to rent on November 1, the lowest ever recorded for the city in two decades. In Dublin and in the other cities, the stock of homes to rent is between 70% and 80% lower than a year ago. Outside the cities, availability continues to fall – with just 559 homes to rent, down almost half on a year ago.

While rents rose around the country between June and September, there remains significant differences in annual inflation rates. Rents in Dublin are just 2.7% higher than a year ago, while rents in Cork and Galway are 6.9% and 8.3% higher. Inflation in Limerick and Waterford cities is higher again, at 8.9% and 10% respectively, while rents outside the cities are 11.9% higher than a year ago. In parts of Connacht, rents rose by 20% in the twelve months to September.

COVID-19 temporarily reshuffled Ireland’s rental problems but the latest figures confirm those problems of shortages are getting worse over time. While Dublin had initially seen an increase in rental availability, with the number of rental homes on the market doubling from 1,600 to nearly 3,200 in 2020, those trends have reversed rapidly, with just over 800 homes available to rent on November 1. In Ireland’s four other cities, there were 81 homes available to rent in total!

The average rental price for a property in Kerry is now €1,070 reflecting a year on year increase of 19.2%.

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