The Current Rental Landscape in Ireland
Ireland is in the midst of a “rental crisis” as rents continue to rise to record levels, driven by a chronic shortage of houses. According to the latest report from property website Daft.ie, the average rent at the end of last year in Dublin was €2,258 per month. Rent inflation is being driven primarily because demand for housing exceeds supply. There were only 1,096 rental homes advertised on Daft.it as of the 1st of February 2023, a 20% decrease from the same period last year. Daft also report that rental prices rose by an average of 14.1% in the third quarter of 2022 compared with the same period in 2021, the highest increase since they began their reports in 2005.
Progress on Housing
Taoiseach (Irish PM) Leo Varadkar, speaking to Ireland’s National Television and Radio Broadcaster, RTÉ, said that 2023 would be the year Ireland would “turn the corner” on the housing crises. Part of the government’s solution to resolve the affordability issue in housing is through its “Housing for all” strategy.
Housing for all is €4bn per year housebuilding programme launched in 2021 and has set a goal of delivering 33,000 houses each year until the year 2030. However, Initiative Ireland estimates that, even if this target were met, it would mean that the current shortfall in properties would still increase by an additional 49,000 units by the end of the decade.
Ireland’s population is at its highest level since 1841 estimated at 5.1 million and an increase of 7.6% since the last census in 2016. Furthermore, Ireland has also accepted over 62,000 Ukrainian refugees. “Preliminary Census 2022 figures suggest that underlying housing need in Ireland over the coming three decades is likely to be in the range of 42,000 to 62,000 homes per year, not far off twice the underlying level of 28,000 new homes per year that underpins Housing for All,” wrote Ronan Lyons, a Trinity College Dublin professor, and housing expert, in his report for property site Daft.ie
Although the current housing environment in Ireland is extremely challenging, at Cornerstone we have a very talented, dedicated, and driven team who continue to work relentlessly to beat the market and find ways to circumvent the issues. Our home search consultants are some of the best in the business and have excellent contacts in the industry.
Cornerstone spends time explaining the market challenges, managing the expectations adequately, and endeavoring to find optimal solutions. Some ways in which we tackle the challenges include reviewing the rental websites every hour, expanding our network of real estate agents, and engaging in a unique fashion with our clients.