A new report from daft.ie has found that the pre-pandemic trend of falling supply and sharply higher rents has resumed in the Irish rental market. Private residential rents grew by 3% quarter on quarter (qoq) in the final quarter of 2021, the fastest rate of growth since mid-2019. This translates to a 10.3% year on year (yoy) increase, with the fastest rates of growth seen in the West of Ireland, but Dublin also saw an acceleration in rental growth (+9%).
The rebound in demand in Dublin is particularly notable, reflective of a return to the city following lockdowns. Rents grew by 4% in the quarter alone, the fastest rate of growth since 2014. The stock of homes available for rent stood at just 712, down 73% yoy and the lowest on record. Nationally, there was 63% yoy fall in rental stock available, with the stock available also at an all-time low of just 1397 homes.
Goodbody Stockbrokers say there have been some concerns that the rental stock figure is not an accurate reflection any longer due to the increase in dedicated PRS/Build-to-Rent developments which would not have separate listing. Daft.ie author Ronan Lyons rebuffs this suggestion in the report, stating that of 63 identifiable PRS complexes completed before 2021, 90% of the 7800 homes are occupied.
According to Goodbody Stockbrokers, "The report is yet another reminder of the acute shortage of homes across tenures in Ireland. We are expecting an increase in supply to close to 30K units in 2023, with PRS being an important part of this growth."