- 13 Feb 23
As the cost of living crisis continues, rent rises in response to a shortage of housing.
The cost of living crisis has been worsening for some time.
Despite efforts to curb the severity of the situation, like an eviction ban instated back in October that will run until the end of March, homelessness looms over many struggling to make ends meet.
Government aid is set to expire in February and while the programs instituted are very much still needed, a lack of funds has forced the government to reassess which they can renew. For the nearly one-third of the country struggling, the compounding issue is an unending nightmare.
Landlords selling off their properties has also added to the situation, citing a lack of profitability of the market. The result was even fewer options on the already too sparse market.
Now, what remains has seen a spike in cost to record levels.
Daft.ie has recently released a report detailing the current situation for renters. Compared to the final quarter of 2021, rent nationwide spiked by 13.7% in the final quarter of 2022. The average rent in the final quarter of 2022 was €1,733 per month.
In Dublin alone, rents are now, on average, up to €2,300. In Cork, rent has risen by 14.9% to about €1,700. In Limerick, a spike by 18.9%, also to an average of €1,700 a month.
Market rents in the final quarter of 2022 were an average of 13.7% higher than the same period a year earlier, as availability of rental homes remained near an all-time low, according to our latest https://t.co/F1oZ1MzHZs Rental Report.
Read more 👉🏼 https://t.co/Au8xcKosZf pic.twitter.com/Jz7sV99jFL
— Daft.ie (@daftmedia) February 13, 2023
Even in areas where Daft.ie reports the rate of interest, like Leinster, which has seen rent slow from a 15% increase to a 13.4% increase in rent, it remains a costly burden for those struggling.
Munster has seen a 11.4% from the last year and Ulster has seen a 17.7% average rent increase.
Homelessness remains on the rise, and is expected to continue, after hitting an unprecedented high last month. While the government works to combat the issue, like through the construction of multi-rental developments, not enough are hitting the market to compensate for the rising numbers.
Over the past year alone, Daft.ie reports only 25 units were built in Dublin. Yet as of February 1st, they reported that less than 1,100 homes are available on their platform to rent. Between 2015 and 2019, there were on average 3,800.
Daft.ie expects further increases in market rents beyond the 13.7% average increase.