In comparison to the same period last year, market rents were on average 12.6% higher in the second quarter of this year, according to the latest report from property website Daft.ie.
According to the survey, the average market rent across the country from April to June was 1,618 euros per month, an increase of 3.3% over the first quarter of the year.
The national annual inflation rate of 12.6% has surpassed the previous peak of 11.8% in late 2016 to become the highest reported in the Daft.ie report since its introduction in 2006.
Nationwide, there were just 716 homes available to rent at the beginning of August, down from almost 2,500 a year ago and another new all-time low in a series that extends back to 2006.The rate of inflation in Dublin, at 12.7 per cent, was above the national average for the first time 2018 while in Cork city the annual change in market rents was 11.8 per cent.
The three other major cities, Galway, Limerick, and Waterford, saw greater inflation rates, ranging from 16.4% in Galway to 17.7% in Limerick. Market rentals outside of urban areas had an average yearly rise of 12%.
As has been consistently the case over much of the past decade, the increase in market rents around the country was driven bu a further tightening in rental availability.
However, the scarcity of rental homes has been unprecedented over the past year, the report added.
Compared to 2009, rental availability has fallen by 97 per cent nationwide.
A review of 75 multi-unit rental developments, which are thought to have added almost 1,000 additional rental units over the past nine months, or about 25 new homes each week, is included in the research.
Based on information that is readily available to the public, it is estimated that of the 7,500 residences in these complexes, about 95% are occupied.
A review of data from Cortland Consult on the supply of new rental homes is also included in the study.
Over the last year, the pipeline has grown by around 23,000, which includes a rise of 13,000 under construction and 28,000 for which a planning application has been submitted, as well as a decrease of 17,500 at the pre-planning stage.
The stock of rental homes for which planning has been granted but yet to start construction remains steady at 43,000.
“While the professional rental sector has added over 7,000 new rental homes in the last five years, this is small relative to the fall of 30,000 in rental listings each year in the traditional rental sector in the same period or the fall of 100,000 listings per year since 2012.
“The shortage of rental accommodation translates directly into higher market rents and this can only be addressed by significantly increased supply.
“While there are almost 115,000 proposed rental homes in the pipeline, these are concentrated in the Dublin area.
“Further, while nearly 23,000 are under construction, the remainder are earlier in the process and the growth of legal challenges to new developments presents a threat to addressing the rental scarcity.”
Average rents, and year-on-year change, in the second quarter of 2022:
Dublin: €2,170, an increase of 12.7% year-on-year
Cork city: €1,670, an increase of 11.8%
Galway, Ireland: €1,663, up 16.4%
Limerick city: €1,559, an increase of 17.7%
Waterford city: €1,312, an increase of 17.1%
The rest of the nation: €1,255, up 12%