Market rents in County Westmeath were on average 9.6% higher in the third quarter of 2023 than a year previously, the latest quarterly Daft.ie rental report has revealed.
The average listed rent is now €1502, up 171% from its lowest point. This figure is similarly reflected in Leinster’s Midland counties, rents rising 11.1% year-on-year, down from 16% three months ago. The increase reflects low availability, with just 43 homes available to rent on November 1, one quarter the level typically seen during the late 2010s.
National Picture
Nationwide, market rents in the third quarter of 2023 rose by an average of 1.8%, compared to the second quarter. Relative to a year ago, rents in the open-market are now 8% higher, with the average market rent nationwide in the third quarter just under €1,825 per month. This compares to a low of just €765 per month seen in late 2011.
For the third quarter in a row, there was a noticeable difference between trends in Dublin and elsewhere. In the capital, market rents rose by just 0.4% quarter-on-quarter – meaning rents are now 1.3% higher than at the start of the year.
However, outside Dublin, the average increase between June and September was 3%, and rents are now 9% higher than the start of the year. All four major cities outside Dublin – Cork, Limerick, Galway and Waterford – saw significant quarterly increases in rents, of at least 5% quarter-on-quarter.
Outside the cities, quarterly increases ranged from 1.8% in Leinster to 3% in Munster. The changes in rent reflect different trends in the availability of rental accommodation. The number of homes available to rent at any one time fell to record lows in 2022 but, since the second quarter of 2023, there has been an improvement in availability driven by Dublin.
On November 1, there were almost 1,800 homes available to rent nationwide, compared to fewer than 1,100 on the same date a year ago. Of the increase of almost 700 homes, Dublin accounted for over 600 of those.
“Between 2018 and 2022, a significant pipeline emerged of new rental homes in Dublin. A steady flow of these homes, especially since 2022, has eased the very tight market conditions that had emerged after covid19 lockdowns. While most of the rest of the country is still experiencing double-digit inflation, market rents in Dublin are now close to static. High construction costs – and uncertain financing – has meant that viability is a challenge outside the capital. But the solution to high rents remains the construction of large volumes of new rental housing around the country. Given viability challenges, it is likely that policy supports will be needed,” Ronan Lyons, Associate Professor in Economics at Trinity College Dublin and author of the Daft.ie Report, said.
