Annual rental price inflation rose to a five-year high of 11.7 percent in the first quarter of 2022 as the supply of available properties plummeted to a new low, according to real estate website Daft.ie.
In its latest quarterly report, the company said there were only 851 homes available for rent nationally on its website as of May 1, the lowest number since its series began in 2006.
“Things have never been bleaker” for prospective renters, said Daft economist and report author Ronan Lyons.
“As always, in a rental market beset by a chronic and growing housing shortage, the only real solution is to increase the number of homes,” he said.
“With more pressure coming from certain quarters to halt the construction of new rental housing, lawmakers need to get their nerves under control.”
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According to Daft, the national average monthly income stood at €1,567 in the first quarter of this year, 11.7% more or €160 compared to the same period in 2021.
This was more than double the low of €765 a month seen just over a decade ago in late 2011 and more than 50 per cent higher than Celtic Tiger’s peak of €1,030 a month, seen in the first quarter of 2008. .
While the report acknowledged that there were different regional trends in rents in recent quarters, the rate of increase seen in the first quarter was similar across all major regions.
In Dublin, market rents increased by 10.6% year-on-year to an average of €2,102, while in Cork and Galway cities rents increased by 10.2% and 13.8% to an average of €1,607 and €1585 respectively.
Inflation was highest in the cities of Limerick and Waterford, at 15.5% and 16.2%, while median rents were €1,485 and €1,262. Outside the cities, the average price increase was 12.7 percent.
Daft’s report also calculated the different rates of inflation experienced by “permanent” renters compared to potential or “move-in” renters.
For 2021, permanent renters saw their rents increase 1.5 percent, while “movers” or new renters paid rents 10.3 percent higher, according to the report.
“The new figures confirm that seated renters have experienced much smaller increases in rents, both during 2021 and in the last 10 years,” Lyons said.
“The focus of policymakers must therefore remain on creating the conditions for tens of thousands of new commercial and social rental homes to be built across the country in the coming years.”