Urgent Warning: Rising Rents Could Fuel Homelessness Crisis

UPDATE: The Simon Communities of Ireland has issued an urgent warning that the rising cost of rent is exacerbating the homelessness crisis, despite a slight increase in the supply of rental homes. The charity is calling for immediate government action to tackle soaring rents and implement a comprehensive strategy to prevent further homelessness.

The charity reports that the number of people living in emergency accommodation surged to 16,996 in November 2025, marking a staggering 12% annual increase. This figure is equivalent to the population of one of Ireland’s largest towns, Leixlip, which has 16,733 residents according to the Central Statistics Office (CSO).

Executive Director Ber Grogan warned that the situation is worsening, emphasizing that rent affordability is a huge barrier for low and middle-income earners and those relying on the Housing Assistance Payment (HAP). “The Government talks about supply, but if new rental properties in urban centers like Dublin, Cork, and Galway are priced at current market rates, they remain completely unaffordable,” Grogan stated.

As of early 2025, average monthly rents in Ireland hit a record high of €2,000, a significant increase of nearly 33% since the pandemic began. Data from property website Daft.ie shows that between June and September 2025, the average rent for a two-bedroom apartment reached €2,080.

Despite the ongoing housing crisis, new tenancy regulations set to take effect in March aim to establish rent pressure zones across the country, capping increases at 2% or the rate of inflation, whichever is lower. However, Grogan criticized these measures, stating that they do not address the urgent need for rent reductions in times of economic downturn and that rising rents are already being reported.

“Residential Tenancies Board data indicates that rent pressure zones can make a difference. However, resetting market rents could severely impact tenants. We have already received reports of significant rent increases, which will worsen the homelessness situation,” Grogan added.

She stressed the importance of a proactive government approach to prevent homelessness, arguing that existing plans lack a firm commitment and adequate resources dedicated to prevention. “Unless there is a budget line for prevention, local authorities will struggle to allocate funds. It is not only a moral obligation to prevent homelessness; it also makes economic sense,” she urged.

The Simon Communities continue to advocate for comprehensive strategies that prioritize homelessness prevention. Grogan believes that the long-term savings for the government would far outweigh the costs associated with preventive measures.

As this crisis develops, the need for immediate action has never been clearer. The public and policymakers alike are urged to engage in this critical conversation, as the growing number of homeless individuals poses a significant challenge for society.

Stay tuned for further updates on this developing story regarding Ireland’s housing crisis and the urgent measures needed to combat homelessness.