Donegal’s Rents Surge 5.4%, Still Lowest in Ireland

UPDATE: The latest Daft.ie Rental Report reveals that Donegal has the lowest average rent in Ireland, with rates now at €1,249 per month, despite a significant 5.4% increase year-on-year. This spike highlights a worrying trend as rental prices soar nationwide.

In a developing situation, rents in Donegal have risen sharply alongside a national average increase of 6.9%, pushing the average rent across Ireland to €2,055. This surge affects all types of accommodation in Donegal, illustrating the growing pressures on renters.

The report indicates that a one-bedroom apartment’s rental price has jumped by 7.7% over the past year. Two-bedroom homes now cost an average of €926, reflecting a 6% increase. Three-bedroom houses have seen a rise to €1,072, up by 5%, and four-bedroom homes now average €1,185, increasing by 7.1%. Notably, five-bedroom houses are experiencing the most dramatic increase, with rental prices soaring 12.6% in just one year.

Ronan Lyons, an economist at Trinity College Dublin, commented on the situation, stating, “The average open-market rent nationwide – at a little over €2,000 a month – is twice the rent seen at the Celtic Tiger peak and 50% higher than pre-COVID levels.” He attributes these increases to a severe shortage of rental housing in comparison to demand.

Lyons also noted that the government’s recent adjustments to Ireland’s stringent rent controls are expected to boost new rental supply, though these changes won’t take effect until next year. He cautioned that the lengthy planning processes could delay any significant impact on the rental market.

These developments come as renters in Donegal continue to feel the strain of rising costs in a region that, despite having the lowest rents in the country, is now witnessing unprecedented annual increases. The urgency of this situation cannot be overstated, as the housing crisis continues to escalate.

For full details, the complete report is available at daft.ie/report.