Rents in Dublin up again

Dublin rents were on average 8.9% higher in the final quarter of 2021 than a year previously according to the latest Rental Report by daft.ie.

The average listed rent is now €2056, up 100% from its lowest point in 2011.

The availability of rental homes in Dublin has collapsed over the last 12 months, with just 712 live rental ads on February 1, the lowest on record.

Nationwide rents in the final quarter of 2021 were an average of 10.3% higher than the same period in 2020.

The average monthly rent nationwide between October and December was €1,524, up 3% on the first quarter and double the low of €765 per month seen in late 2011.

The sharp increase in rents around the country reflects a worsening of the unprecedented scarcity of rental homes.

Nationwide, there were just 1,397 homes available to rent on February 1st, a new all-time low in a series that extends back over fifteen years to January 2006.

The recent fall in homes to rent reflects a further tightening of supply in Dublin, where just 712 homes were available to rent on February 1st, less than one quarter of the average seen for February over the last two decades.

Outside Dublin, supply improved marginally between November and February but with just 685 homes to rent, availability is less than one third of the pre-pandemic level of February 2020 and one twentieth the level seen a decade ago.

Regional trends in rents point to a readjustment in rental demand. While rents in Munster, outside its three main cities, had seen some of the strongest growth in recent quarters, Dublin is now seeing the fastest percentage growth in the country. Rents in the capital rose by 4.1% between September and December, compared to just 0.5% in Munster – a reversal of the situation in the second and third quarters of the year.

“The strong rebound in economic activity, as public health restrictions relax, has translated into a strong demand for rental accommodation.”

Commenting on the report, Ronan Lyons, Associate Professor of Economics at Trinity College Dublin and author of the Daft Report, said:

“The strong rebound in economic activity, as public health restrictions relax, has translated into a strong demand for rental accommodation.

“Coming at a time of very weak rental supply, this has pushed rents up further, with inflation at its highest rate nationwide since early 2018. The number of live rental ads is at its lowest ever on record, with fewer than 1,400 live ads on February 1st.

“As new purpose-built rental stock is completed, availability of rental homes will be better measured by capturing development-specific vacancy rates, as well as ads. An analysis of over 60 existing purpose-built rental communities indicates over 90% occupancy across their nearly 8,000 homes.

“Figures for a further 12 developments coming on stream in early 2022 suggest brisk take-up of new homes. Even if the 1,700 homes due to become available in the first half of 2022 were added to the existing stock of rental ads, the number of homes available to rent in Dublin now would be below the level seen a year ago.

“As ever, the solution remains in the construction of large numbers of market- and cost-rental housing, to cater for tenants of all incomes. Reform of rent controls would also enable new rental homes to be absorbed faster.”

In a statement, Richard Boyd Barrett TD, People Before Profit Housing spokesperson, reacted to the latest Daft.ie report  saying the figures “further confirm the utter failure of the government to address the spiralling rental crisis.”

“The government’s RPZ restrictions on rent increases were always destined to fail because they have no mechanism to control the rents set by landlords on newly constructed apartments or homes,” Deputy Boyd Barrett said.

“The rental crisis is fast turning into a rental disaster.

“A more than 10% increase on already totally unaffordable rents in just one year, exposes the utter failure of the government’s policies.

“This will make the cost of renting simply unbearable for vast swathes of people, it will drive many more into homelessness.

“People Before Profit have warned repeatedly for several years, that the governments RPZ limits on rent increases were destined to fail, and that only a proper regime of rent control where rents are set at affordable levels can bring the rental crisis under control.

“What’s happening in Dún Laoghaire is now absolutely disastrous and unsustainable.

“Average yearly rent is now over €26,000 per year.

“This is totally and utterly affordable for the vast majority of working people, never mind those on dependent on HAP, where the highest homeless HAP rate is €1,900.

“In Dún Laoghaire now, anyone now looking for rental accommodation is facing the real prospect of ending up homeless.

“This is the direction the rest of Dublin and the rest of the country is heading.

“We need emergency measures now and that means serious rent controls that set rents at affordable levels. Nothing else will stem this disastrous spiral.”

Social Democrats Housing Spokesperson Cian O’Callaghan described rents across the country as ‘out of control.’

“Last year, rents across the country increased by an average of more than 10pc,” Deputy O Callaghan said.

“Meanwhile, 20 counties had double-digit rent increases, of up to 25pc in Donegal.

“In Dublin, in just the last three months of the year, the increase was 4pc.

“Average rents in Dublin now range between €1,900 and €2,258.

“To put this in context, only the top 2pc of earners can actually afford this rent – which requires a salary of €115,000 to be affordable.

“A separate report today has confirmed that ordinary workers and families are locked out of homeownership, with cuckoo funds outbidding them on homes by an average of more than €100,000.

“Today’s daft.ie report makes clear that ordinary workers and families are also increasingly being priced out of the rental market. Even the dribble of supply that is coming onto the market, is priced out of the reach of most ordinary workers.

“The government’s response to this crisis has been to fiddle with rent caps, which are now set at 2pc.

“Given the double-digit rent increases replete across the country last year, it is clear rent caps are nothing more than window dressing.

“They are doing nothing to stop sky-high rent increases.

“The answer to these outrageous and unaffordable rent increases has been obvious for years now – ban rent increases and dramatically increase the supply of public, affordable and cost rental homes.

“Regrettably, the government is refusing to act – and ordinary people are suffering as a consequence.”