Rents rose nationwide by an average of 10.4% in the year to December 2017, according to the latest quarterly Rental Report by Daft.ie.
The average monthly rent nationwide during the final quarter of 2017 was €1,227, the seventh quarter in a row a new all-time high has been set. The annual rate of inflation represents a slowdown in inflation from the rate recorded in 2016 (13.5%), which was the largest annual increase on record.
In Offaly, rents were on average 11.4% higher in the final three months of 2017 than a year previously. The average advertised rent is now €792, up 50% from its lowest point.
In Dublin, the increase in rents in the year to December 2017 was 10.9% and rents in the capital are now 26%, or almost €380 a month (€4,500 a year), higher than their previous peak in 2008. Most of the other major cities saw similar changes in rents during 2017. In Galway and Waterford cities, rents rose by a little over 12% during the year, while in Limerick city, rents rose by 14.8%. In Cork, the increase in rents was 7.7%, while outside the five main cities, rents rose by 9.8%.
There were 3,143 properties available to rent nationwide on February 1st. This is the lowest number ever recorded for this time of year since the series started in 2006, and the figure marks a 15% decrease on the same date a year previously. In Dublin, there were fewer than 1,350 homes available to rent, compared to almost 6,700 on the same date in 2009.
Commenting on the report, Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said: “2017 marks the fourth consecutive year of double-digit gains in rents nationwide. The underlying pressure for rising rents remains due to a chronic shortage of available rental accommodation, at a time of strong demand. In some segments in Dublin, rents have now doubled since 2010. Rents have been rising in the capital twice as long as they fell – and indeed twice as long as the last market upswing. With at least 40,000 new homes a year needed to meet underlying demand, but well below 20,000 homes built in 2017, it remains the priority for policymakers to bring construction costs down in line with affordable levels.”
Activity and demand in the rental market remains very high. Martin Clancy from Daft.ie said: “On average, over 1,000 property searches are now taking place every minute on Daft.ie. On a monthly basis, we are seeing over 2.5 million unique users logging onto the site."
Year-on-year change in rents, Q4 2017:
Dublin: €1,822, up 10.9%
Cork: €1,180, up 7.7%
Galway: €1,096, up 12.4%
Limerick: €1,004, up 14.8%
Waterford: €835, up 12.1%
Rest of the country: €860, up 9.8%
The full report is available from www.daft.ie/report and includes a commentary by Ronan Lyons, as well as an analysis of affordability and statistics on residential yields around the country.
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