Updated at 9:40 a.m.
The latest rent increases across the country indicate a “crisis point” for the housing market, according to national housing charity Threshold.
Speaking about the latest Daft.ie report, a spokesperson said: “The rent increases reported in the Daft Q1 2022 rent report are the culmination of successive housing policies that have relied too heavily on the private sector to provide housing.
“Private renters and those looking for a home in the West and Northwest have been hit particularly hard, in recent years, by continued rent increases.
“The Daft report demonstrates that rate increases in western counties have reached a critical point. Annual increases of up to 25 percent simply cannot be supported by renters.”
They said it is encouraging that the Housing Commission has started its work, but said “immediate action” is required by the Government to address rising costs faced by private tenants, compounded by the impact of inflation and the increased cost of living.
Market rents in the first quarter of 2022 were on average 11.7% higher than the same period a year earlier, according to daft.ie’s latest rental report.
The national average market income between January and March was €1,567 per month, 2.8% more than in the last three months of 2021 and more than double the minimum of €765 per month observed at the end of 2011.
While there have been differences in regional rental trends in recent quarters, the rate of increase was similar across all major regions between early 2021 and early 2022.
In Dublin, market rents increased by 10.6% year-on-year, while in the cities of Cork and Galway, rents increased by 10.2% and 13.8%.
Inflation was highest in the cities of Limerick and Waterford, at 15.5% and 16.2% respectively, while outside the cities the average increase was 12.7%.
The sharp increase in market rents across the country reflects a significant worsening in the record shortage of rental housing.
Nationwide, there were just 851 homes available for rent on May 1, down from more than 3,600 a year ago and another new all-time low in a series stretching back more than fifteen years to 2006.
The recent drop in rental housing is seen across all regions of the country, with an 81% drop in availability in Dublin and a 66% drop in the rest of the country.
The report also includes an analysis of 72 multi-unit rental developments, which are estimated to have added at least 400 new rental homes in the last six months. Of these, an estimated 82 percent are already occupied, with occupancy in the multi-unit rental sector estimated at 95 percent in early May, up from 93 percent six months ago.
The report also includes an estimate of the trend in rents for permanent tenants since 2010, compared to new tenants paying market rates. While inflation in market rents is currently above 10 percent, and market rents have doubled over the past decade, “permanency” rents have risen just 1.5 percent over the year. past and less than 40 percent in the last ten years.
Commenting on the report, Ronan Lyons, Associate Professor of Economics at Trinity College Dublin and author of the Daft report, said: “The latest figures confirm the overall strength of demand for rental accommodation in Ireland.
“While strong housing demand reflects underlying economic health, it becomes challenging when there is not adequate supply to meet it. In Ireland’s case, the economy has suffered from an undersupply of new rental accommodation for more than a decade. As a result, market rents have doubled, and as this latest report shows.”
Average rents and year-on-year variation, 1Q 2022:
● Dublin: €2,102, 10.6% more than the previous year
● City of Cork: €1,607, 10.2% more
● Galway City: €1,585, 13.8% more
● City of Limerick: €1,485, 15.5% more
● City of Waterford: €1,262, 16.2% more
● Rest of the country: €1,218, 12.7% more