The Daily Star Ireland
Average asking rents across Ireland have surpassed €2,000 per month for the first time, with figures showing a 3.4% increase between January and March of this year. According to the latest report from property platform Daft.ie, the national average rent now stands at €2,053, marking one of the steepest quarterly rises seen in nearly 20 years.
The data highlights the continued upward pressure on rents, which have risen dramatically from a post-recession low of €765 in 2011. Since just before the onset of the Covid-19 pandemic, average rents have climbed by nearly 48%, underscoring the persistence of inflation in the housing market.
City-by-City Breakdown and Regional Comparisons
Dublin continues to report the highest rental costs in the country, with average monthly rents in the capital reaching €2,540. This reflects a 5.8% annual increase as of March. However, the largest year-on-year increases were recorded in regional cities, led by Limerick where average rents jumped by 20% to €2,405. Other sharp rises included Galway at 12.6% (€2,304), Cork at 13.6% (€2,213), and Waterford at 9.9% (€1,735).
Rents also rose outside the primary urban centers. In Leinster and Connacht-Ulster, prices increased by just over 5% compared to the previous year, while Munster recorded an 11.5% rise across non-city areas. The report paints a picture of sustained rental growth across nearly all parts of the country.
The report also noted a significant shortage in rental supply. As of early May, there were just over 2,300 properties listed for rent nationwide through Daft.ie, representing a 14% decrease from the same time last year. This figure is the third-lowest May total in the past two decades.
Expert Analysis and Policy Challenges
Professor Ronan Lyons, an economist at Trinity College Dublin and author of the Daft report, attributed the relentless rise in rents to a deepening shortage of rental housing. He warned that the limited supply in the open market continues to drive up prices, particularly for new tenants.
Lyons pointed to legislative changes introduced in 2021 concerning rent controls, which he said have significantly hindered investment in Ireland’s rental sector. According to his analysis, these regulatory shifts have restricted the flow of capital needed to expand rental stock—particularly new housing supply, which is seen as the most effective long-term solution to address the imbalance.
He called on policymakers to revisit these controls and implement reforms aimed at stimulating the development of new rental properties. Lyons emphasized that while improvements may be possible in Dublin, broader incentives will be needed to encourage investment in other regions.
During a separate interview on RTÉ’s Morning Ireland, Lyons noted that rents in the open market have surged nearly 160% over the past decade and close to 50% in just the past five years. He clarified that these figures apply primarily to new leases, as sitting tenants are subject to different pricing rules due to the existence of rent pressure zones.
Despite regional variation, the trend is consistent. In some counties, such as Carlow and Kilkenny, the annual increase has been around 4–5%, while others, like Cavan, Monaghan, and Donegal, have experienced cumulative rises following already significant growth in prior years.
The chronic shortage of rental accommodation, Lyons concluded, remains the key challenge facing Ireland’s housing market. Without structural policy changes to address supply constraints, elevated rents are likely to persist across all regions.
