A new Daft rental report reveals significant rent increases across Irish cities in 2024, with Cork and Galway experiencing approximately 10% rises, while Limerick city faced a dramatic 19% increase in rental costs.
The report, analyzing the fourth quarter of 2024, highlights the continuing upward trajectory of market rents nationwide, with Dublin recording a 4% increase to €2,481. Cork city’s average rent reached €2,097, Galway city rose to €2,197, and Limerick city topped at €2,271. Waterford city saw a 7.4% increase to €1,651, while areas outside major cities experienced a 6.2% rise to €1,582.
The national average rent in Q4 2024 stood at €1,956 per month, marking a 43% increase from pre-pandemic levels. The rental market’s strain is further evidenced by diminishing property availability, with fewer than 2,300 homes available to rent nationwide as of February 1st – a 25% decrease from the previous year and significantly below the 2015-2019 average of 4,400 properties.
Trinity College Dublin Economics Professor Ronan Lyons, the report’s author, emphasized the urgent need for reform, citing a shortfall of 150,000 to 200,000 rental homes nationwide. He highlighted the growing disparity between protected and unprotected tenants, noting that since 2021, new tenants have faced nearly 50% rent increases while existing tenants saw only 7% rises.
according to The Journal, the findings come as Taoiseach Micheál Martin indicated the government’s willingness to review rent cap policies, particularly the Rent Pressure Zones (RPZ) system, which currently limits annual rent increases to 2% in designated areas. These zones, originally introduced in 2016, have been extended until December 2025, though potential changes are under consideration.
Lyons stressed that “significant reform” of rent controls is essential as the rental crisis enters its second decade, emphasizing the need to balance market pressures and encourage new housing supply.