Growth in mid-west rental properties possible 'outlier' as prices continue to rise 

Following a significant increase in available rental properties across Limerick, Clare and Tipperary, underlying data paints a 'more negative picture'

"While Counties Tipperary and Clare saw increases in the number of homes available, they also saw an increase in prices."

The number of residential properties to rent in Ireland's mid-west increased significantly in July following months of decline, with current availability returning to triple digits for the first time since the beginning of this year.  

Figures from Limerick Chamber's latest Mid-West Rental Monitor show that across Clare, Limerick and Tipperary, 130 homes were available to rent, an increase of 43 homes since June - the largest rise since records began in August last year.

However, despite growing availability, chief economist and director of policy at Limerick Chamber, Seán Golden noted that underlying data paints a more negative picture, adding that both Limerick City and County "have remained relatively stable in terms of supply with no sign of it increasing, with average prices remaining high. 

"While Counties Tipperary and Clare saw increases in the number of homes available, they also saw an increase in prices."

While all counties saw an increase in availability, last month's growth was largely due to a significantly greater number of properties in Tipperary, which saw 33 new homes enter the market in July.

At the same time, the average rental price of these homes fell to €1,242, down from more than €1,300 in June but still up notably in the past year, with three additional short-term rentals also entering the market.

Mr Golden also noted that while Tipperary has always been the most affordable county to rent in the mid-west, that gap has since closed.

"While supply might increase, that does not mean that prices will decrease – this month has shown the opposite. Over the last year, across all three counties, prices have been trending upwards."

In Clare, ten additional properties entered the rental market, bringing the total number of homes to 32 in the previous month. The average and median prices were €1,400 and €1,300 respectively, reflecting an increase since June, contrary to the monthly price declines exhibited across Tipperary and Limerick. 

Of the 32 residential homes to rent in Clare in July, just over half were located in Ennis, with the number of granny flats continuing to grow in popularity across the short-term rental sector. 

In Limerick, the number of residential homes to rent remained unchanged from the previous month, however, monthly prices came down notably from just under €1,800 to €1,650 in July.

Across the city, three additional rental properties entered the market, bringing the total number of available homes to 22 in July, with prices also decreasing in the month from €1,960 to €1,875.

Following significant growth in Tipperary's rental market, Economic and Policy Analyst at Limerick Chamber, Eoghan Carr said this major increase "sparked scepticism." 

"We spoke to local estate agents where roughly one-third verified they were seeing supply increases, while two-thirds haven’t noticed anything significant. July could be an outlier, but only time will tell."