New findings from the Economic and Social Research Institute (ESRI) highlight a concerning trend in Ireland’s rental market. According to the ESRI’s latest study, conducted with support from the Residential Tenancies Board (RTB), new tenants are paying significantly higher rents than existing tenants.
The research, which analyzed tenancies registered between April and September 2022, reveals that, on average, new tenants are shelling out €214 more per month than their counterparts who have been in their rental properties for a while. Specifically, new tenants are paying an average of €1,517 per month, a substantial 16.4% increase compared to the average of €1,303 paid by existing tenants.
The most substantial disparities between new and existing tenants were observed in the northwest, west, and parts of the midlands, although smaller gaps were evident in the eastern regions. In some areas, the difference was as high as 25%.
Dr. Rachel Slaymaker, the report’s author, noted, “Particularly in parts of the North, the Northwest, and the Midlands, we generally are seeing new tenants there paying typically between 20 and 25% higher than their existing tenants. But actually, some of the biggest differences we see would be in Limerick City, in Carlow.”
In Dublin, the situation is even more pronounced, with new tenants being twice as likely to pay over €2,000 in monthly rent compared to existing tenants. Over one in five new tenancies in the capital exceed this threshold, while nearly two-fifths of new tenancies do so.
The ESRI report also highlights that approximately a quarter of new tenancies in Dublin have monthly rents of €1,500 or less, in contrast to two in five existing tenancies.
These findings underscore the growing rent disparity in Ireland, especially in certain regions, and raise concerns about housing affordability for new renters. The data also indicates the need for policies to address the challenges faced by those entering the rental market in Ireland.