Rental crisis revealed: Average monthly rent in your county as nationwide average soars above €1k
Published 10/05/2016 | 02:30
Rents nationwide have gone above €1,000 a month for the first time since the financial collapse.
Not since May 2008 have average monthly rents across the State been at this level, a new report from Daft.ie shows.
And the supply of properties to rent is at its lowest level on record.
Rental costs shot up by 9.3pc in the last year, the new report shows.
Surging rents is just one of the challenges facing new Housing Minister Simon Coveney as he begins his first week in the new portfolio.
Rents rose by an average of 2pc in the first quarter of 2016, the report says.
The average monthly rent across the State is now €1,006 - an eight-year high.
Dublin rents were up almost 9pc in the past year, and are now above their previous high, which occurred in 2008.
But there were even stronger rises in cities outside the capital. The highest rate of inflation countrywide was in Cork city, where rents rose by a staggering 16pc in the past year.
Galway, Limerick and Waterford all recorded double-digit rises in rental costs.
Outside the major cities, rents have risen by 8.7pc in the last 12 months.
Supply of properties to rent is now at its lowest level on record, the Daft.ie report indicates. Just 3,120 properties were available to rent on May 1 last.
A year previously, that figure was 4,300, while in 2009 there were 23,000 homes available to rent. Availability in Dublin remains very low, with just 1,100 homes on the market at the start of May, compared to an average of 3,800 for the decade 2006 to 2015.
Dr Ronan Lyons, an economist at Trinity College Dublin who compiled the report, said: "The severe shortage of rental accommodation has worsened in the last three months, a phenomenon reflected in rapidly rising rents in all parts of the country."
Dr Lyons said that with the formation of a new Government, a top priority must be to address the lack of housing of all kinds, including homes to rent.
Dr Lyons said there was a huge risk that rental inflation would become embedded in the system.
"There is a danger that this very high rate of inflation becomes something of a new normal. There is nothing normal - or indeed sustainable - about inflation in rents of 10pc," he said.
One out of every five households rents their home.
Dublin rents were up 8.8pc in the past year, with the average now €1,464.
Cork saw an annual rise of 16pc in rental costs, with the average monthly cost now €1,003.
Galway tenants are now paying an average of €900 a month, up 12.7pc in a year.
In Limerick the average rental is €792 a month, up 12.4pc. Waterford rents are now €687, up 11.1pc since last year. In the rest of the country the average is €708, up 8.7pc in the past 12 months.
Reacting to the figures, the Irish Property Owners' Association said that the State took 60pc of rent payments in taxes.