Irish rental prices rose the most on record in 2022, with increases of 20% in some cities, raising alarm over the potential fallout for the broader economy.
(Bloomberg) — Irish rental prices rose the most on record in 2022, with increases of 20% in some cities, raising alarm over the potential fallout for the broader economy.
In the final quarter, average rents were 13.7% higher than the same period in 2021, according to property website daft.ie. It was the strongest rate of inflation for a calendar year since reporting began in 2005.
Cities such as Galway, Limerick and Waterford saw rents surge about 20%, while average rates rose 13% in Dublin and 15% in Cork.
“Ireland’s private rental market remains chronically starved of homes,” said Ronan Lyons, the report’s author and an economics professor at Trinity College Dublin. “The fact that it is persistent and shows little signs of abating must serve as a wake-up call.”
A rising population and financial concerns slowing construction have fueled the crunch in the rental market. That’s threatened to spill over by complicating efforts by companies to recruit talent from outside the country.
Fewer than 1,100 homes were available to rent on Feb. 1, down 20% from a year ago and compared to an average of 8,500 between 2006 and 2021.
“This hopefully puts into context just how bad things are,” Lyons said. “It is imperative that policymakers find a way to boost the construction of badly needed homes for rent.”
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