Rents in South East Leinster counties - which includes Carlow - now 20% above high of 2008

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Darren Hassett

Reporter:

Darren Hassett

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news@carlowlive.ie

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In the South-East Leinster counties of Carlow, Kilkenny and Wexford, rents rose by an average of 6.8% in the year to June 2019 and are now 20% above their previous high in early 2008.  

Rents rose by an average of 6.7% nationwide, in the year to June 2019, according to the latest quarterly Rental Report by Daft.ie.

This marks the lowest rate of rental inflation across the country since the final quarter of 2013.

In Carlow, a one bed apartment is costing an average of €667 up 8.5% on the same period last year, a two-bed house is €777 which is an increase of 9%, a three-bed house will cost €900 up 7.9% while a four-bed will cost €991 up 7.9%.

At €1,391, the average monthly rent nationwide during the second quarter of 2019 nonetheless marks the thirteenth consecutive quarter of record rents.

The average listed rent is now €361 per month higher than the previous peak in 2008 and almost €650 higher than the low seen in late 2011.

Carlow
Average rent: €948
Qtr-on-qtr change: 3.4%
Year-on-year change: 8.6%
Change from trough: 59.9%

The slowdown in rental inflation is driven by Dublin, where annual inflation has fallen from a high of 13.4% in mid-2018 to 4.5% now.

There has been a cooling off in inflation in the other major cities, also, although the level of inflation is still higher than in Dublin.

In Cork, rents are 7.9% higher than a year ago, while in Galway city, rents are 9.1% higher. In Limerick, rents have increased by 10.5% in a year, similar to the increase seen in Waterford city (10%).

Outside the major cities, rental inflation varies from 6.2% in Leinster to close to 12% in both Munster and Connacht-Ulster. 

Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said: "The slowdown in rental inflation will be welcome news to tenants and policymakers, among others.

"It is more likely driven by limits to affordability than improved supply, however. Availability on the rental market remains at levels that were unprecedented prior to 2015.

"For example, in the Dublin market, there were just 1,541 properties available to rent on August 1. While that’s up from 1,121 two years ago, it’s well below the average of 4,700 for the preceding decade. 

"Building new rental supply remains critical to fixing the rental market. New figures in this report suggest that up to 25,000 new rental homes will be built over the coming few years.

"These will certainly help address the supply-demand imbalance. Stopping further inflation should be just the first target for policymakers, however. Bringing rents down to affordable levels must remain the ultimate goal."

Average rents, and year-on-year change, Q2 2019

Dublin: €2,023, up 4.5% 
Cork: €1,366, up 7.9% 
Galway: €1,297, up 9.1% 
Limerick: €1,225, up 10.5% 
Waterford: €1,013, up 10.0% 
Rest of the country: €993, up 9.2%