As the rental crisis in Ireland intensifies, the extortionate rents outside of Dublin have become a cause for concern. The scarcity of available properties in these areas has driven rental prices to unprecedented levels, with the current supply meeting only a fraction of the demand.
Recent data reveals that rental prices for new properties have surged by an average of 1.8% between July and September, and a staggering 8% compared to last year. This crisis is further compounded by the continuous rise in rental prices for 10 consecutive quarters, while construction activity in the housing market continues to decline.
The desperate situation leaves individuals and families struggling to find affordable housing solutions.
Rental Stock Shortage Exacerbates Crisis
The shortage of available rental properties worsens the rental crisis. Outside of Dublin, there is a severe lack of rental housing, with only a third of what is needed to meet the demand. This lack has resulted in rapidly increasing rents, with prices for new rentals rising by an average of 1.8% between July and September.
Compared to a year ago, rental prices have increased by 8%, and areas outside Dublin have experienced significant rent hikes. In Connacht-Ulster, rental prices have risen by 16.1% since last year, while Limerick and Donegal have seen rents rise by over 20% year on year.
The rental market has seen double-digit rent increases for 10 consecutive quarters, with Munster experiencing market rents that are 13% higher than a year ago. This shortage of rental properties, coupled with rising rents, has created a desperate situation for those seeking affordable housing.
Increasing Rents in Connacht-Ulster and Leinster
Rental prices in Connacht-Ulster and Leinster continue to skyrocket, worsening the rental crisis in these areas. According to recent data, rental prices in Connacht-Ulster have increased by an astonishing 16.1% since last year. This is significantly higher than the national average and highlights the seriousness of the situation in these regions.
Additionally, Limerick and Donegal have witnessed rent hikes of over 20% year on year. In Leinster, rental prices have also experienced a notable surge, rising by 7.8% in the past year. It is evident that both Connacht-Ulster and Leinster’s rental markets are confronted with immense challenges, including substantial rent increases and the swiftest inflation rate in two years.
Immediate measures must be taken to tackle this crisis and offer affordable housing alternatives for residents in these areas.
Dublin Rental Market Stalls
The stagnation of Dublin’s rental market is becoming increasingly apparent. While rental prices in other parts of Ireland continue to soar, the rental market in Dublin is experiencing a period of stagnation. According to recent data, rental prices in Dublin rose by only 0.4% in the third quarter of this year, and they are only 4.3% higher than they were a year ago. This is in stark contrast to the double-digit rent increases seen in areas outside Dublin.
The lack of significant growth in rental prices in Dublin may be attributed to factors such as a higher supply of rental properties and a saturation of the market. As the rental crisis deepens in other parts of the country, the stagnation in Dublin’s rental market is becoming more pronounced.
High Cost of Renting Vs Buying in Leinster
Is the high cost of renting compared to buying in Leinster making the rental crisis worse? Rents in Leinster have increased by 7.8% in the past year, which is significantly higher than the inflation rate. This has resulted in a situation where renting is often much more expensive than purchasing a property.
For instance, the cost of renting a one-bedroom flat in Meath is more than double the cost of buying one. Additionally, the price of a five-bedroom house in Leinster has dropped by an average of 6.5% compared to last year.
These factors contribute to the growing rental crisis, as individuals and families are faced with the challenging decision of spending a large portion of their income on rent or struggling to find affordable housing options.
Construction challenges worsen housing crisis
As construction challenges persist, the housing crisis is further exacerbated. The shortage of rental stock and skyrocketing rents outside Dublin are the direct consequences of these challenges.
Construction activity has been declining for the fourth consecutive month in October, leading to a lack of available properties for rent. Developers are facing higher costs and planning delays on housing projects, which only prolongs the crisis.
As a result, rental prices are outpacing the cost of mortgages for most properties, making it increasingly difficult for individuals and families to find affordable housing. This situation is particularly severe in areas outside Dublin, where double-digit rent increases have been recorded for ten consecutive quarters.
The construction challenges in the housing market have created a pressing need for action to address the crisis and alleviate the burden on renters.
Summary
In the midst of Ireland’s deepening rental crisis, the skyrocketing rents outside Dublin have reached unparalleled levels, leaving individuals and families struggling with the burden of housing options that they cannot afford.
The scarcity of available properties and the relentless rise in rental prices have created a situation of desperation and uncertainty. As the construction activity in the housing market continues to decline, the crisis shows no signs of improving.
Like a storm gaining momentum, the rental crisis outside Dublin looms ominously, overshadowing the prospects of finding affordable homes.
