Renting in the capital now costs workers almost 40pc of salary
Published 15/06/2016 | 02:30
The 'average' worker needs to put aside almost 40pc of their monthly salary just to meet the cost of renting an apartment in Dublin.
The one-bedroom unit in the capital now commands an average rent of €1,060 per month, at a time when official figures show that the 'average' monthly earnings of workers stand at €2,831 - meaning 37pc of salary is needed to pay for a home.
This figure is way in excess of the amount which experts consider affordable. The Housing Agency says that workers should spend no more than 30pc of salary on rent or mortgage payments and utility bills.
The monthly rent in the capital far exceeds this amount.
An analysis of official figures gleaned from the Residential Tenancies Board (RTB) shows that the capital remains, by far, the dearest place in which to rent a home - and it's getting more expensive.
An analysis of 416 locations contained in the RTB's Rent Index shows that the 'average' rent across all property types currently stands at €1,280 per month.
Over the last year, they have increased in price by as much as 23pc on the North Circular Road, but have only fallen in just three areas - Arbour Hill, Killester and Harold's Cross.
The data also reveals that the top 85 most expensive locations in which to rent across the State are all in the capital. The table is topped by Grand Canal Square in Dublin 2, where the 'average' home costs €2,238 per month - an increase of more than €300 per month year-on-year, or 15.5pc.
Greystones in Wicklow comes next at 86th - where a home costs €1,203.
The figures come as the number of homes being built across the four Dublin local authorities remain at stubbornly low levels, which is driving rent hikes.
Last year, just 2,891 homes were completed in the city, far below the level needed to meet demand. Across the State, just over 12,600 were delivered, around half the number required.
The data suggests that even in the cheaper parts of the city, a family home will still cost almost €1,000 per month to rent.
The Rent Index also shows that tenants can expect to pay far more today if renting a home they just a year ago.
In addition, it reveals:
• A three-bed semi-detached home costs an average of €1,237 per month. The most expensive are in Dublin 4, at €2,323 per month (up 8.2pc), and the cheapest are in Balbriggan at €980.
• A two-bedroom apartment ranges from the cheapest on the South Circular Road at €653, up to €2,147 on Grand Canal Dock. These units have risen in price by 13pc in the last year.
• A one-bedroom apartment is most expensive in Milltown in Dublin 6 at €1,333 per month. Units have gone up by 10pc in Merrion, Dundrum and Islandbridge. The cheapest areas for these homes are Balbriggan and Donabate, followed by Drumcondra and Phibsboro in the city centre.
• Across all property types, Grand Canal Square is the most expensive at €2,238 and Grand Canal Dock at €2,221. These have increased in price by 15.6pc and 19.6pc respectively. The cheapest area is the South Circular Road.
The Government is under enormous pressure to kick-start the construction sector and get units built to serve private buyers, eliminate council waiting lists and reduce the cost of renting. It is hoping that a €200m infrastructure fund announced yesterday will help unlock sites capable of delivering at least 20,000 homes.
These homes could not previously be developed due to a lack of key services including roads or drainage.
In Dublin alone, as many as 49,000 units cannot go ahead due to infrastructure deficits.