It's basic maths - the cost for builders to construct apartments just doesn't add up
Fundamental changes are needed if we're to solve the rental shortage in the housing market, writes Ronan Lyons
The country is crying out for houses and apartments for rent, so why aren't builders buying land and tapping in to this market?
The answer is simple. Excluding the cost of the actual land, it would take a monthly rent of €1,400 to justify the construction of a two-bedroom apartment. Outside Dublin's golden triangle, that is unsustainable in most of the country.
This is perhaps not what many politicians want to hear ahead of the election, but the latest figures from the rental market show the indisputable pull of our urban centres as recession turns to recovery. The detailed figures in the accompanying table, on what has happened rents over the last four years, reveal a stark divide between urban and rural locations.