Rents Surge 67% Since Celtic Tiger Peak as Supply Plummets

URGENT UPDATE: Rent prices across Ireland have skyrocketed to an alarming 67% above the peak levels seen during the Celtic Tiger era in 2007, according to a shocking report by Daft.ie. As of September, rents have surged by 4.3% over the past year, while the rental supply has plummeted, creating a dire situation for prospective tenants.

Latest figures indicate that the number of homes available for rent has decreased by more than 20%, with only 1,901 properties listed nationwide on November 1, down 21% from the same time last year. This drastic reduction means that there are currently less than 44% of the rental properties available compared to the years between 2015 and 2019.

The implications are severe, particularly in urban areas. In Dublin, the rental market has seen a drop of nearly 30% in available homes, while cities like Cork, Galway, and Limerick are experiencing the tightest supply conditions. The average monthly rent for a two-bedroom apartment has reached an astonishing €2,080, reflecting a stark reality where affordability is slipping further from the grasp of many.

Ronan Lyons, the report’s author and an Economics professor at Trinity College Dublin, emphasized the urgent need for “significant amounts of new rental supply” across the country to alleviate the ongoing crisis. He stated, “The picture remains unchanged – this is a market starved of supply.”

As the Government prepares to unveil its new housing plan today, which aims to create 12,000 new social homes, experts remain skeptical. The details of this long-awaited plan will be revealed on Thursday, but critics like Sinn Féin’s Eoin Ó Broin have raised concerns that it may not adequately address the soaring rent prices. Ó Broin remarked, “The latest Daft.ie rent report shows rents continuing to spiral out of control,” highlighting a lack of commitment to increase social and affordable housing targets.

While inflation has eased from its peak of 13.3% in 2022 to the current rate of 4.3%, the housing supply crisis is expected to push rents even higher. The report reveals a stark disparity across regions; while rental inflation in Dublin is comparatively low at 2.7%, it has surged by 76% in the Connacht-Ulster region. Notably, Waterford city has recorded the highest annual rent increase of 11.4%.

As the situation unfolds, the urgency for effective policies is palpable. The EU is also responding to the crisis, planning a major summit on housing for 2026 to address affordability issues across the bloc. EU Commission President Ursula von der Leyen underscored the need for urgent action, echoing sentiments shared by housing experts in Ireland.

As the government deliberates on its new housing strategy, the pressing question remains: will it be enough to reverse the trend of escalating rents and insufficient supply? Stay tuned for updates on this developing story.