‘Rents Now 31% Higher Than 2008 Peak’

at

Yesterday.

Daft.ie released it’s latest rental report.

From the report:

“Rents now 31% higher than their 2008 peak.

“The average market rent nationwide has risen by 81% since bottoming out in late 2011 and, having exceeded its 2008 peak in 2016, is now 30.8% above the previous high.

“In Dublin, rents are now an average of 37% above their previous peak while in Cork and Galway cities, rents are 30% and 47% above levels recorded a little over a decade ago.

“Outside the cities, the average rent is 22% above its previous peak.”

In the report, Ronan Lyons writes:

“…we are still discussing substantial price increases, even if in percentage terms the increases in key markets have fallen below a noteworthy threshold.

The average Dublin rent rose by €160 during 2018, compared to €180 in 2017. It is unlikely that any new or existing tenants will be celebrating just because the new all-time high is less dramatically above the previous high than it was compared to the figure from two years ago.

“Indeed, one possible reason for the slowdown in inflation could be that the market has reached the limits of what tenants can pay. Digging beneath the figures, though, another reason suggests itself: improved supply. If true, this could indicate that the mild improvement in market conditions in Ireland’s rental market may continue.

“On January 1st 2019, there were 3,641 properties available to rent nationwide, an increase of over 11% on the same date in 2018, when there were just 3,270 homes on the market.

“As shown in the graph accompanying this piece, (above) this is still the second lowest start-of-year total on record, going back to 2006. It is also below the 2016 and 2017 totals (both just below 3,900) and well below the previous market crunch in 2006/2007 when there were just under 5,000 homes available to rent.

“But an improvement is still an improvement, even if it is off a very low base. When availability improves, it is either due to a fall in demand or an increase in supply. Obviously, with Brexit looming, a fall-off in demand cannot be ruled out. However, that seems at odds with the evidence: employment and incomes are, at least at the moment, still going up.

“So, at a time of apparently strong rental demand, especially in the Dublin market, there are some signs that availability is improving and inflation easing, however slightly. A further possibility presents itself. It is possible that the numbers are something of an aberration ‐ one swallow does not a summer make.

Read Daft’s Rental Price Report for the fourth quarter of 2018 in full here

11 thoughts on “‘Rents Now 31% Higher Than 2008 Peak’

  1. Starina

    My landlord recently upped my rent by 4%, which he has every right to do, but the accompanying letter pissed me off so much — he said the government required him to raise the rent by 4% every year. How stupid does he think his tenants are?!

  2. kellMA

    FGS…. you should write him back and say that you are concerned that he may be being scammed into earning more income as the world and his mother know the cap is 4%. He doesn’t have to make use of it…. Gobdaw…

  3. Haventgotajota

    My rent went up 4% this month again, it should be a 4% of the original rent price i started on, not the 4% of the existing rent price. System is a joke. Landlord TD’s making a fortune.

  4. SOQ

    And still this government does nothing to help renters despite a substantial amount of that increase going in tax.

  5. Eoin

    Rents in Dublin increasing by “only” 9% a year? Supply according to Daft is 80% down on 2010? Rents up more than 30% since the peak of the madness of the last property boom yet wages and inflation are more or less the same, possibly less with USC. And somehow the Sindo yesterday managed to spin all of that on its front page “rent crisis: first sign of a slowdown, first easing off for three years”? And then I look down the front page at the big advertisement for Denis O’Brien’s private hospital, the Beacon, whose deputy CEO is on the board of the National Childrens Hospital. And I think to myself, what a wonderful world.

    1. Cian

      Wait a minute. The government can’t win with appointments to boards.

      If they appoint people with the necessary skillset (like the CEO of a private hospital) they get lambasted. The chair is ex-Sisk (nasty builders: boo hiss);

      You specifically mention Brian Fitzgerald (and link him to DOB – why?). He was the Chief Executive and Director of Finance at St. James’s Hospital. So I’d say he is well placed to do that job.

      In fact, the board seems to be a bunch of very experienced people:

      http://www.newchildrenshospital.ie/the-project/national-paediatric-hospital-development-board/

      1. Otis Blue

        The board, no doubt, will reflect fondly on its success in project planning and management, governance, procurement, etc.

        Definitely one for the CV, I’d say.

  6. Ron

    Meanwhile in the Daily Banana Republic Gazette…

    Inept, incompetent Taoiseach calls a meeting over the weekend of the other inept incompetent Ministers in his cabinet to discuss the boy Harris and the upcoming no confidence motion.

    All agreed he will make an apology for being incredibly inept, incapable and reckless regarding one of the biggest overruns of a capital project.. The most incompetent Minister in the history of the state promises to ensure he will notify his cabinet colleagues of further ineptitude and mismanagement sooner going forward..

    Good enough for FF who will do anything now to ensure the continuation of one of the most dysfunctional cabinets we have ever seen all in order to delay their day if reckoning at the ballot box..

    Nothing to see here and the incompetence is allowed to continue. PWC and BAM are laughing all the way to the bank

    The often talked about stereotype of the thick lazy Irish Paddy is no longer a stereotype. it’s the reality now.. Irish voters having the wool pulled over their eyes by the most incapable Minister for Health that ever was appointed.

    Well done Ireland. Is it any wonder we are the laughing stock of the world when we allow it to happen

  7. DOC

    Question
    Why are the rents being allowed to be raised month after month after month?

    Answer
    Because an indiscriminate amount of TD’s in our beloved DAIL are Landlords
    Privately LAUGHING at the unwashed “People”
    The “People” that voted them in
    But our elected “Representatives” do not care if they are voted out in the next Election
    They will be set up for life in the Oireachtas or some other semi state body

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