Rent prices have increased by 82% in Ireland since 2010

The housing crisis, now surpassed its tipping point, does not show any signs of retreating from the brink, as found by the Banking and Payment Federation of Ireland (BPFI).

Population growth and increased demand are cited as the two main factors in the BPFI’s publication. These two factors, exacerbated by the significant gap between average rent and mortgage payments, see housing price pressures remain for the foreseeable unless supply increases substantially.

The BPFI’s report, published today, shows that Ireland’s rent prices have increased by 82% compared to the EU average of 18% between 2010 and 2022, while the population from 2011 to 2022 increased by over 500,000. An inadequate attempt to combat these figures came in the form of 130,000 units built during the same period.

Brian Hayes, BPFI’s Chief Executive had this to say on the monitor’s figures: “we can see that prices are rising faster in Ireland than in the EU average. This is particularly stark in terms of rental prices with the latest Eurostat data showing that average rents have increased by 82% in Ireland… the third highest increase in the EU. In terms of house prices, the increase was nearly 50% in the EU during the same period with average prices increasing by over 55% in Ireland.”

Mr Hayes also cited declining figures on the commencement of new builds “on an annual rolling basis after peaking at 35,000 units during the first quarter of 2022 to some 26,600 units in October 2022.”

With increasing evictions and rising figures in homelessness, the outlook for affordable accommodation in 2023 does not seem hopeful.

The latest BPFI Housing Market Monitor Q3 2022 published today shows that resilient housing demand, driven by population growth and considerable pent-up demand, means house price pressures are set to remain unless supply increases substantially. https://t.co/4PeW6aocrG pic.twitter.com/jKOomzGDG0

— Banking & Payments Federation Ireland (@BPFINews) December 6, 2022