Market rents in the year to September have risen by 4.3%, according to the latest rental report by Daft.ie.
In the third quarter of this year market rents went up by an average of 1.7% , the eighteenth consecutive quarter of rising rents.
This means they are now one third higher than their pre-covid levels, and two thirds higher than their Celtic Tiger peak in late 2007.
The average monthly rent for a two-bedroom apartment nationwide, between June and September was €2,080.
The report shows that rental inflation for the third quarter remains lower in Dublin than the national average, with prices rising by 2.7% in the capital compared to 4.3% nationally.
In Cork city, rents are up 9.3% year-on-year, while in Galway and Limerick cities, rents are up by 6%, and in Waterford city, rents are up 11.4% year on year.
Outside the cities, the rate of inflation is just above 5%.
On 1 November there were just over 1,900 homes available to rent nationwide, down 21% year-on-year and less than half the average for the period 2015-2019.
In Dublin, the stock of homes to rent is down by almost one third, year-on-year.
Daft.ie started producing its housing market analysis, “The Daft Report,” in 2005 for the rental market.
Celebrating twenty years of reports it says this latest one is revamped with an updated methodology and new metrics on room rents, as well as rentals of full properties.
Commenting on the new-look report, its author Ronan Lyons, Professor in Economics at Trinity College Dublin, said:
“The twentieth anniversary of the Daft.ie Report has given us the opportunity to revamp and refresh things, with the new format putting far more information, in some cases going back to 2002, available at the fingertips of all those interested in Ireland’s housing market.
“For all the work involved in the new report, however, the picture remains unchanged – this is a market starved of supply. Rents are now one third higher than they were just over five years ago and indeed two thirds higher than their Celtic Tiger peak.
“The easing off of inflation – from over 13% in 2022 to 4.3% now – has been welcome. However, the sharp fall in availability of homes to rent suggests that any further pressure on rents over the coming quarters will be upwards.
“While it will take years, significant amounts of new rental supply – all around the country – are required to change conditions in the rental market.”
