Mid-West rental accommodation supply declines while rents stay high

In Limerick city, about 16 homes were available to rent for about €1,913 per month

'To encourage urban living and create a more dense population in cities such as Limerick, more smaller style homes such as one-beds and apartments need to be delivered,' said chief economist with Limerick Chamber Seán Golden. Picture: Gareth Fuller/PA Wire

Just under 100 homes were available to rent at high costs in the Mid-West in January, marking the sixth consecutive month without an increase in rental accommodation in the area, a report found.

Limerick Chamber’s Mid-West Rental Monitor report, which includes rental availability figures for Limerick, Clare, Tipperary, and some surrounding areas, found the average and median rent costs have remained relatively constant overall for the region, while supply has fallen.

“The average price to rent a residential home in both Limerick City and the county continues to rise, while supply remained low over the winter period,” said Limerick Chamber economist Diarmuid O’Shea.

The report showed the number of available houses to rent was the lowest since this data series began last August.

In Limerick City, about 16 residential homes were available to rent in January for about €1,913 per month. There were 28 homes available in the rest of the county, with rent reaching about €1,834 for each.

“It is too early to tell if this is a seasonal trend, however the low levels of supply and high rental prices are a concern nonetheless,” Mr O'Shea said.

One single-bed apartment in addition to eight other apartments were available to rent in Limerick last month. All but one of these properties were located in the city.

“To encourage urban living and create a more dense population in cities such as Limerick, more smaller-style homes such as one-beds and apartments need to be delivered,” said chief economist with Limerick Chamber Seán Golden.

“Worryingly, Shannon town continues to see low rental availability, despite its proximity to a main employment hub for the Mid-West,” said Mr Golden.

In Clare, 30 residential homes were on the rental market for an average price of €1,243 per month and in Tipperary there were 37 homes available at an average price of €1,091.

Rents at record levels

A separate report by property advertising platform Daft.ie showed rents across the country rose to record levels in Q4, driven by a lack of supply. 

During this period, average rents hit €1,733 per month, up 13.7% on the same period a year ago. In some parts of Munster, the rise was even higher, with Waterford rents up 20%, according to the latest report from Daft.ie.

“Adequate supply of appropriate and affordable rental accommodation is needed to meet the demand that currently exists across the Mid-West right now,” said Mr O’Shea.

Meanwhile, housebuilding activity declined for the fourth month in a row in January as construction firms struggled to secure new orders despite a housing crisis, according to experts.

The latest BNP Paribas Real Estate Ireland Construction Purchasing Managers’ Index (PMI) also showed builders continue to battle sharp input cost inflation.