Homes for rent at lowest level since the boom

As the supply of available housing continues to dry up, rents across Galway have increased by almost 11% over the past year, according to new research.

Availability is now as its ‘tightest’ since the height of the economic boom in 2007.

A survey from property website Daft.ie found that rents in the county are up by 10.7%, while in the city, the increase was 7.4% over the past twelve months.

Those in private residential accommodation in the city are now paying an average of €889 per month, while their county counterparts are paying an average of €606.

Economist Ronan Lyons from Daft.ie said the continuing increases are due to an “extreme shortage of supply”, which is also causing homelessness and a lack of student accommodation.

At the moment in the city, a one-bed apartment costs an average of €617 per month; a two-bed rents for around €831; a three-bed semi for €943; a four bed for €1,024 and a five-bed for €1,199.

Rents in the city have now jumped by 16% from their lowest point in 2010 and 2011.

Significantly, the number of units available to rent between Galway, Limerick, Cork and Waterford cities currently stands at 600 – that’s the tightest the market has been since 2007.

The national average rent between January and March of this year was just over €960. That’s 8.2% higher than at the same point last year.

Mr Lyons explains: “Over the last ten years, the number of households renting has grown rapidly but a renter today finds themselves with less choice on the market than at any other time since 2006.

“This extreme shortage of supply is at the heart of not only rising rents and house prices but also issues around working homeless, student accommodation shortages and a lack of options for those in mortgage arrears.

“Solving the lack of housing will require initiatives to moderate the high cost of building homes in this country and completely reforming the way social housing is funded,” said Mr Lyons.