Supply of Rental Homes in Ireland at Lowest Point in a Decade

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There were fewer properties available to rent nationwide in May 2015 than at any point since 2006, according to the latest quarterly Rental Report by Daft.ie. There were just 4,300 properties available to rent nationwide in early May 2015, compared to 7,200 on the same day a year previously. The figure for May 1 is the lowest since the series was started in January 2006; the highest was in mid-2009, when there were almost 24,000 properties available to rent nationwide.

Regarding rental prices, year-on-year inflation in rents nationwide continued to ease slightly in the first three months of 2015. The national average rent between January and March was just over €960. That's 8.2% higher than at the same point last year however, it is down from the 10.4% increase in mid-2014.

This national trend is being driven by a slow-down in rent inflation in Dublin, which has eased from almost 17% in April 2014 to 7% in April 2015.  This has been offset by an increase in inflation in Dublin's Commuter Counties, which has risen from 7.6% to 14% in the same period. Compared to their lowest point (2010 in Dublin and 2012 in the commuter counties), rents have now risen by a third in the capital and a quarter in the surrounding areas.

In the other city centres, rents continue to rise but at a slightly slower pace. In Cork city, rents are 7.5% higher than a year previously, similar to the increase seen in Galway 7.4%. In Limerick, rents have risen by 6.8% in a year, while in Waterford city rental inflation was 5.6%.

Commenting on the report, Ronan Lyons, economist at TCD and author of the Daft Report, said: "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."

Year-on-year change in rents - major cities, Q1 2015

• Dublin: €1,358, up 8.3%
• Cork: €911, up 7.5%
• Galway: €889, up 7.4%
• Limerick: €718, up 6.8%
• Waterford: €634, up 5.6%