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BreakingNews.ie
19-05-2025
- Business
- BreakingNews.ie
Average monthly rent exceeds €2,000 for the first time
The average open-market rent nationwide in the first quarter of 2025 was €2,053 per month, according to the quarterly rental report. This is up from a low of just €765 in 2011 and 48 per cent higher than before the outbreak of COVID-19. Advertisement Rents in the first quarter of 2025 increased by 3.4 per cent, one of the largest three-month increases in the last 20 years. Rents rose by 5.8 per cent in Dublin and by 8.6 per cent elsewhere, the smallest gap in inflation rates in two years. The county with the largest year-on-year increase was Limerick, with rents up by over 20 per cent. Cork saw an increase of 13.6 per cent, with rents up in Galway by 12.6 per cent in the last year. Advertisement Waterford City saw a jump of 9.9 per cent. Rents in Leinster and Connacht-Ulster were up just over 5% year-on-year, while rents in Munster were 11.5% higher. There were just over 2,300 homes available to rent nationwide on May 1st, down 14 per cent in the last year. Ireland Research indicates high levels of confidence in Ir... Read More This is the third-lowest total for May in 20 years. Commenting on the report, its author Ronan Lyons, Professor in Economics at Trinity College Dublin, said:'The average open-market rent nationwide exceeds €2,000 a month for the first time, up from below €1,400 a month just five years ago. The sustained increases in rents in the open market are being driven by an acute and worsening shortage of rental housing. Unfortunately, changes made to rent controls in 2021 dramatically reduced the ability of Ireland's rental sector to attract the capital needed for new supply, the ultimate remedy for the shortage. "The opportunity exists for the government to reform those controls and facilitate the emergence of a new pipeline of rental homes. Nonetheless, further supports will be needed to encourage new rental supply outside of the Greater Dublin Area.'
Irish Examiner
19-05-2025
- Business
- Irish Examiner
Average rents rose 3.4% in first three months of 2025
Market rents rose by an average of 3.4% in the first three months of 2025, according to the latest Rental Report by one of the largest three-month increases in the last two decades. In the year to March, market rents rose by 13.6% in Cork and 9.9% in Waterford. Limerick saw the largest increases, with rents up over 20% year-on-year. Rents in Galway were up 12.6%. Rents rose by 5.8% in Dublin and by 8.6% elsewhere, the smallest gap in inflation rates in two years. Outside the major cities, rents in Leinster and Connacht-Ulster were up just over 5% year-on-year, while rents in Munster were 11.5% higher. The average open-market rent nationwide in the first quarter of 2025 was €2,053 per month, up from a low of just €765 in 2011 and 48% higher than before the outbreak of covid. Outside the major cities, rents in Leinster and Connacht-Ulster were up just over 5% year-on-year, while rents in Munster were 11.5% higher. There were just over 2,300 homes available to rent nationwide on May 1, down 14% year-on-year. This is the third lowest total for May in 20 years. 'It is imperative that the new government avoid the trap fallen into by the last one in thinking that the only determinant of new homes built is the budget given to housing. The government is not just the funder, it is also the referee," said TCD associate professor of economics Ronan Lyons, the author of the report. 'The average open-market rent nationwide exceeds €2,000 a month for the first time, up from below €1,400 a month just five years ago. The sustained increases in rents in the open market are being driven by an acute and worsening shortage of rental housing. "Unfortunately, changes made to rent controls in 2021 dramatically reduced the ability of Ireland's rental sector to attract the capital needed for new supply, the ultimate remedy for the shortage. The opportunity exists for the government to reform those controls and facilitate the emergence of a new pipeline of rental homes. Nonetheless, further supports will be needed to encourage new rental supply outside of the Greater Dublin Area.'
The Journal
19-05-2025
- Business
- The Journal
Rental prices rising at near 20-year high as Limerick rents shoot up towards Dublin levels
AVERAGE LIMERICK MARKET rental prices have shot upwards by 20.4% in the first three months of this year compared to the same period last year – resulting in an average price almost equalling that of the capital city. The figures from the latest report show that rental prices nationwide are soaring to approach Dublin's. Limerick city's average market rent price has reached €2,405 in Q1 of this year. In Dublin, where average market rental prices have grown by 5.8% in the same time, average prices are €2,540. Nationally, rents rose by 7.3% on average, judging by open-market rental prices compared to the previous year, and now sit at an average of €2,053 per month. In the past three months alone, market rents rose by an average of 3.4%, one of the largest three-month increases in the last two decades. In Dublin, various areas had disparate average market rent pricing: north county Dublin had the lowest of €2,371, while south county Dublin is reported as nearing €2,800. Another notable finding is that in Connacht, the cost of renting a room has risen by 11% on average in comparison with the same period the year before. Advertisement The spike in prices is, once again, paired with a significant lack of available housing for rent across Ireland. There were just over 2,300 homes available to rent nationwide this month, down 14% year-on-year. This is the third lowest total for May in twenty years and close to half the 2015-2019 average for availability of homes to rent. A similar finding was also reported in housing report issued near the end of March. The housing report, which covered houses for sale in Q1, found that price inflation of houses in Ireland is at an eight-year high. Author of the report, economist Ronan Lyons, pointed to the last government's reversal of policy decisions made by the 2016-2020 government as causing further damage to Ireland's rental market. 'Together with the change in external conditions and a sharp tightening of Rent Pressure Zones, in effect making them one of the strictest rent control regimes in the world, this had a catastrophic effect on the supply pipeline,' Lyons wrote within the report. 'The irony is that the last government scrapped pro-supply policies just as they were beginning to show their effects – with market rents in Dublin largely static in 2023, due to lots of new completions, even as rents surged in other cities. 'Instead, policy relied on increases in direct funding, rather than channeling others' savings, to try to keep completions up.' An imminent reform of Rent Pressure Zones (RPZ) has been suggested by members of government, which Lyons has said is 'long overdue'. A recent ERSI report stated that RPZs have been successful in curbing rental inflation despite a 'clear need' for reform. Related Reads Dublin building collapse example of why derelict site levy should rise, says councillor Shared equity scheme gets two more years - but Sinn Féin says it will 'make things worse' RPZ changes will have 'significant impact' says Minister, who claims he understands renters' fears Taoiseach Micheál Martin said in March that the government is assessing whether an alternative system 'which protects renters but also enables people to have a clear, stable environment in which to invest' can be established. It is understood the new plan will form part of the government's new housing plan , which is set to be published before the summer. Sinn Féin's spokesperson on housing, TD Eoin Ó Broin, said that the government's 'failure to deliver a sufficient volume of social, affordable rental and affordable purchase homes' is the reason behind rising rents nationally. He said that too many people are being forced into a shrinking private rental sector as a result. 'Government must introduce an emergency three-year ban on rent increases and put a full month's rent back into every private tenant's pocket through a fully refundable tax credit,' he said, alongside a call for an acceleration on the building of social and affordable homes. Average market rents, and year-on-year change – major cities – 2025 Q1 Dublin: €2,540, up 5.8% Cork city: €2,213, up 13.6% Limerick city: €2,405, up 20.4% Galway city: €2,304, up 12.6% Waterford city: €1,735, up 9.9% Rest of the country: €1,645, up 7.2% Journal Media Ltd has shareholders in common with publisher Distilled Media Group. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Extra.ie
19-05-2025
- Business
- Extra.ie
Rents rising at the fastest pace since records began
Rents are rising at their fastest pace since records began, according to the latest report from property market website They were up by an average of 3.4% in the first three months of the year, 'one of the largest three-month increases in the last two decades', the report says. The average 'open-market rent' nationwide in the first three months of the year was €2,023 per month, up almost €200 from a year ago. It is also nearly three times as high as the report low of €765 in 2011. Pic: Crispin Rodwell/Bloomberg via Getty Images Rents are also 48% higher than before the outbreak of COVID-19 in early 2020. In the year to March, market rents rose by 5.8% in Dublin and by 8.6% elsewhere, the smallest gap in inflation rates in two years. After a period of subdued pressure on rents in Dublin, due to a large volume of new rental housing coming on the market, inflation in the capital is converging with price rises elsewhere. The sharpest rise was in Limerick city, up more than 20% to €2,405. In Waterford, market rents in March were up 9.9% year-on-year, while in Cork and Galway cities, they were up 13.6% and 12.6% respectively. Pic: Education Images/Universal Images Group via Getty Images Outside the big cities, rent in Leinster and Connacht-Ulster is up just over 5%, while rents in Munster were 11.5% higher. There were just more than 2,300 homes available to rent nationwide on May 1, down 14%. This is the third lowest total for May in 20 years and close to half the 2015 to 2019 average for availability of homes to rent. Trinity College Dublin economics professor Ronan Lyons, author of the report, pointed out that the average open-market rent nationwide exceeds €2,000 a month for the first time, up from less than €1,400 just five years ago. Pic: Leah Farrell/ Mr Lyons added: 'The sustained increases in rents in the open market are being driven by an acute and worsening shortage of rental housing. 'Unfortunately, changes made to rent controls in 2021 dramatically reduced the ability of Ireland's rental sector to attract the capital needed for new supply, the ultimate remedy for the shortage. 'The opportunity exists for the Government to reform those controls and facilitate the emergence of a new pipeline of rental homes. Nonetheless, further supports will be needed to encourage new rental supply outside of the Greater Dublin Area.' Pic: Shutterstock He added: 'The irony is that the last Government scrapped pro-supply policies just as they were beginning to show their effects – with market rents in Dublin largely static in 2023, due to lots of new completions, even as rents surged in other cities. 'Instead, policy relied on increases in direct funding, rather than channelling others' savings, to try to keep completions up. 'The results have been predictable, if very disheartening. Having risen by almost 7% in 2023, the national average dragged down by Dublin's new supply, market rents rose by a further 6% in 2024. Pic: Getty Images 'That's 13 straight years, since 2011, of rising rents.' Countrywide, market rents rose by an average of 3.4% between December and March. This is the joint-second largest increase in market rents (after 2022 Q3) on record, in a series of records that goes back 19 years. Prof Lyons added: 'The national rate of inflation in market rents – at 4.9% – is at its lowest rate in three years and down dramatically from the 14.1% that had been recorded in mid-2022. Pic: Getty Images 'Meanwhile, the availability of homes to rent in Dublin had almost doubled, year-on-year, in late 2023. 'On October 1 last, there were almost 1,500 homes available to rent in the capital compared to just 800 on the same date a year previously. 'Since then, the availability of rental homes in Dublin has fallen, rather than risen, although at least some of that is seasonal. There were just over 1,200 homes available to rent in Dublin on May 1, up only 4% year-on-year. 'This represents the good news. But even then, the good news is not about rents becoming more affordable, after a decade of almost uninterrupted growth. 'Rather it is about rents increasing at a slower rate than in recent years. For more rents to become more affordable, there needs to be a greater supply relative to demand. But while demand has grown, supply remains very tight. 'This is true even in Dublin, where, according to the analysis in this report, over 125 purpose-built rental developments [that have been] opened since 2016 have added over 10,000 new rental homes,' Prof Lyons concluded.
Irish Independent
19-05-2025
- Business
- Irish Independent
Average nationwide rent surpasses €2,000 a month amid ‘worsening shortage' of supply
This is up from a low of €765 in 2011 and 48pc higher than before the Covid-19 pandemic. Market rents in Ireland saw one of the largest three-month increases in the last two decades in the first quarter of this year, rising by an average of 3.4pc. Rents rose 7.3pc nationally year-on-year up to March, which is in line with the average rate of inflation over the last 18 months. In the year to March, market rents rose by 5.8pc in Dublin, its highest rate of inflation since mid-2023. Rents elsewhere rose by 8.6pc, marking the smallest gap in inflation rates between Dublin and the rest of the country in two years. Pressure on rental markets in Ireland's other cities remains acute. In Waterford, market rents in March were up 9.9pc year-on-year, while in Cork and Galway cities, they were up 13.6pc and 12.6pc, respectively. Once again, Limerick has seen the largest increases, with rents up over 20pc year-on-year. Outside the major cities, rents in Leinster, Connacht and Ulster were up just over 5pc year-on-year, while rents in Munster were 11.5pc higher. There were just over 2,300 homes available to rent nationwide on May 1, down 14pc year-on-year. This is the third lowest total for May in 20 years and close to half the 2015-2019 average for availability of homes to rent. It is also the third quarter of falling availability, following six quarters of improving stock. ADVERTISEMENT The report's author Ronan Lyons, a professor in economics at Trinity College Dublin, said rent increases are 'driven by an acute and worsening shortage'. He emphasised that the open-market rent nationwide now exceeds €2,000 a month 'for the first time', up from below €1,400 a month just five years ago. 'Unfortunately, changes made to rent controls in 2021 dramatically reduced the ability of Ireland's rental sector to attract the capital needed for new supply, the ultimate remedy for the shortage,' he said. The report also showed that on average, rents for sitting tenants have increased by 3.1pc each year over the last decade, compared with 8.5pc for market tenants during the same period. Sitting tenants in Dublin have seen a greater share of this increase (3.8pc) per year, than their counterparts elsewhere (1.2pc). Prof Lyons said the opportunity exists for 'long-overdue' reform of Rent Pressure Zones to facilitate the emergence of a new pipeline of rental homes. 'Aligning the system here with standard practice in other places with rent controls – in particular by allowing for rents to reset when tenants leave but also by reviewing the limit on increases allowed – will benefit tenants in the long run, as a new pipeline of supply will emerge,' he said. 'The longer it takes to get to that new system, however, the longer we will have to read about chronic shortages of rental homes and sharp increases in market rents.'
