The deepening housing crisis could be heading for a perfect storm, with one new report showing record high rents and plummeting stock, and another report projecting a 20% rise in house prices in the next three years, writes Noel Baker.
The latest Daft.ie rental price report, covering Q3 of this year, shows rents have risen for the 21st consecutive quarter and that the average rent across the country is €1,198 — an 11.2% increase on the same period last year.
The report, compiled by assistant professor of economics at Trinity College Dublin, Ronan Lyons, also shows that, on November 1, there were fewer than 3,400 properties available to rent nationwide — down over 16% compared with a year ago.
The situation is most acute in Dublin, yet there were just 251 homes to rent between the cities of Cork, Galway, Limerick, and Waterford on November 1, with Prof Lyons saying the public is “starved of rental supply”.
The report also shows it is typically cheaper to have a mortgage on a smaller property, such as a one-bedroom apartment or a two-bed property, than it is to rent it, while the same is true in many parts of Dublin and in cities outside the capital for three-bed properties.