A new report from Daft.ie shows that rents and rental inflation in the Irish market reached another record high in the second quarter of the year. Rental growth of 12.6% was achieved across the country, with rental growth in the Dublin market exceeding that of outside Dublin for the first time since 2016.
Goodbody Stockbrokers say quickening rental growth in the capital is reflective of more normal living patterns following the end of lockdowns over the pandemic period.
The supply shortage worsened in recent months, with the stock of properties to rent falling to 716 homes nationwide. In Dublin, there were just 292 homes available to rent in August. Both figures are record lows. The report includes an analysis of the pipeline of new rental properties in the system using data from Cortland Consult. There are currently 115,000 new rental properties in the system, up over 23K from a year ago.
The number under construction has risen from 9,200 to 22,600, while the biggest increase has been in the stock of rental homes awaiting a decision (from 7k to 35K). This latter figure is affected by judicial reviews, but there is also a large stock of properties (43K) that have planning but have yet to be commenced.
Goodbody say mobilising these developments will be key to narrowing the supply deficit, but the apartment-building sector continues to be hampered by viability concerns. In a report Goodbody noted, "In the context of this record low level of supply and the growing demand from natural population growth, migration and the Ukrainian refugees, the path for rents continues to be upwards. Evidence of an increase in supply is positive, but it will take some time, and likely further policy actions, to make a real dent in the supply deficit though."