Rising Rent Costs May Lead to Increased Homelessness, Warns Charity

The Simon Communities of Ireland has issued a stark warning that despite an increase in the supply of rental homes, rising rent prices are pushing more people towards homelessness. The charity is urging the Government to implement measures to curb soaring rent costs and to adopt a comprehensive strategy aimed at preventing homelessness.

As of November 2025, the number of individuals living in emergency accommodation reached 16,996, marking a 12 percent increase from the previous year. This figure is comparable to the population of Leixlip, Co Kildare, which is home to 16,733 residents, according to data from the Central Statistics Office (CSO).

Affordability Crisis Deepens

Ber Grogan, executive director of Simon Communities, highlighted that the crisis is exacerbated by a lack of affordable rental options for low- and middle-income earners, as well as those reliant on support programs like the Housing Assistance Payment (HAP). Grogan stated, “One of the frustrating things is that the Government talks about supply, but if there are loads of new rental properties in Dublin city centre or Cork and Galway that are set at current market rates, they are completely unaffordable.”

She emphasized the need for a recognition of the increasing rental costs that have reached extortionate levels across the country. Data from property website Daft.ie indicates that average monthly rents exceeded €2,000 for the first time in 2025, reflecting a 33 percent increase since the onset of the pandemic. For instance, between June and September, the average rent for a two-bedroom apartment hit €2,080.

Government Response and Future Outlook

Although new tenancy regulations set to take effect in March aim to designate all areas as rent pressure zones, limiting rent hikes to 2 percent or the rate of inflation—whichever is lower—Grogan expressed frustration that these measures may not sufficiently address the affordability crisis. “It is worrying to hear some rents are already being increased in the interim,” she remarked.

“Residential Tenancies Board data shows having rent pressure zones does make a difference, and that expansion is welcome, but if someone is going to reset the market rent, it will be difficult for tenants,” Grogan added.

Grogan is calling for the government to prioritize preventive measures against homelessness. While acknowledging the ambitious new housing plan aimed at addressing homelessness issues, she noted that it lacks a firm commitment and dedicated resources for prevention efforts. “Unless there is a budget line put on the prevention framework, then how are local authorities going to be able to put money into prevention?” she questioned, emphasizing the moral and economic sense of investing in preventative strategies.

In conclusion, the Simon Communities’ warning underscores the urgent need for effective government action to tackle rising rents and prevent homelessness, as more individuals find themselves at risk amid the housing crisis in Ireland.