Rents increasing in Munster as supply continues to be limited

Rents increasing in Munster as supply continues to be limited

In Cork city, rents have risen by 5.2% in the last year and the average rent is now €1,443.

The cost of renting in Munster has continued to rise while rent prices in Dublin have fallen, according to new figures from Daft.ie.

In Cork city, rents have risen by 5.2% in the last year and the average rent is now €1,443, while in Munster rents rose by an average of 2.1% between June and September alone.

In County areas in Cork, rents were on average 2.5% higher in the third quarter of 2020 than in 2019, with the average listed rent now at €1,057.

On a national level rents rose by 1.2% between June and September. This rise offsets a fall of 1.4% which was seen in the second quarter, following the outbreak of Covid-19 and means that the average monthly rent nationwide in the third quarter of 2020 was €1,419, up 1.2% on the same period in 2019 and 91% higher than its lowest point in late 2011.

However, in Dublin, rents largely stayed the same between June and September, rising just 0.2%, and are 0.8% below the same period in 2019.

This is in contrast to what is being seen outside Dublin, where rents rose by 2.9% in the third quarter and are now 3.3% higher than a year ago.

The largest increases in rents has been in the main cities, excluding Dublin, and in the rest of Leinster.

Rents in Cork, Galway and Waterford cities are roughly 5% higher than a year ago, while rents in Limerick are 3.4% up year-on-year.

In Leinster, bar Dublin, rents vary from 4% higher in Wexford to 7% in Carlow.

While rents are rising in Munster, they are falling in the Connacht-Ulster region, dropping by 1.5% in the last year.

Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, put the trends down to supply issues in many areas.

“The figures in this latest rental report highlight the importance of supply in bringing about more affordable rents," said Mr Lyons. "In Dublin, supply has increased this year, largely due to the impact of Covid-19, and rents are down slightly."

Elsewhere in the country, rental shortages continue to worsen and rents continue to rise to all-time highs. 

"Even in Dublin, availability remains below 2006-2007 levels, a time of rental shortages, and at roughly one third the level of availability seen a decade ago.

"This underscores the importance of significant amounts of additional new rental supply — and not just in Dublin — in solving an issue that was central in the minds of voters earlier this year.

"The respite in Dublin’s rental sector is down to Covid-19, which has brought about a once-off redistribution of a couple of thousand properties from the short-term lettings segment to the long-term rental segment. 

"As welcome as these are for those now living in them, they are a finite resource and that, combined with depressed migration into the city, has meant that rents in the third quarter of 2020 were 0.8% lower than a year previously, the first time in almost a decade that rents fell in the capital.”

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