Rental costs are increasing in four of Ireland’s top five cities TheJournal.ie

AVERAGE RENTAL PRICES increased an average of 1.2% nationwide in the three-month period between June and September, according to new figures released today.

Four of Ireland’s top five cities have seen an increase in their listed average monthly rental cost compared to last year, Daft.ie said in its Quarterly Rental Report.

In the city of Dublin, monthly rent fell slightly in the last quarter year, by 0.8% to € 2,028.

However, the cost of rent increased by as much as 5% compared to last year in Cork City, Galway City, Limerick City and Waterford City.

Rent increased 5.2% to a monthly average of € 1,443 in Cork City, and 5% in Waterford City to € 1,058.

Galway City saw a 49% increase to € 1,443, while rents in Limerick City increased 3.4% to € 1,260.

The average national increase has offset a 1.4% decrease seen at the beginning of the year during the second quarter immediately after the Covid-19 outbreak in Ireland.

The rental supply in Dublin is almost double what it was at this time last year, from 2,700 to 1,400.

However, outside of Dublin, the rental supply dropped by a third and reached its lowest level since 2006 in early November with only 1,435 properties available to rent outside of Dublin.

Trinity College economist and report author Ronan Lyons said the figures highlight the “importance of supply in generating more affordable rents.”

“In Dublin, supply has increased this year, largely due to the impact of Covid-19, and rents have dropped slightly,” Lyons said.

“In other parts of the country, the rental shortage continues to worsen and rents continue to rise to record highs. Even in Dublin, availability remains below 2006-2007 levels, a time of lean rentals and roughly a third of the level of availability seen a decade ago, ”he said.

“This underscores the importance of significant amounts of additional new rental supplies, and not just in Dublin, in solving an issue that was central to the minds of voters earlier this year.”

Sinn Féin spokesperson for housing Eoin Ó Broin said the new figures showed that “the rental crisis is getting worse.”

“What the data from Daft.ie shows is that the rental crisis is getting worse. Rents are too high and in many places they continue to rise. Meanwhile, there is no response from Housing Minister Darragh O’Brien, ”Ó Broin said.

Ó Broin said the 2021 Budget includes “no action to stop rent increases, no action to put money back in tenants’ pockets, and no funding to deliver the volume of affordable rental housing our cities urgently need.”