Rent prices in Donegal are now 24% higher than a year ago, with the Connacht-Ulster region showing record-breaking rates of inflation than any region back to 2006.
The average price of a rental home in Donegal is now €826 per month, according to the latest Daft.ie report.
In the final quarter of 2021, the quarterly increase in rents was 5% in Donegal, with just 188 homes available to rent across all of Connacht & Ulster on February 1st. This is the second lowest ever in a series extending back to 2006 – the pre-covid average during 2019 was 600.
The cost of a single or double room in Connacht-Ulster rose by roughly 8.1% on average in the year to January 2021. The cost of a 3 bed house is up 21.8% to €770.
Dublin academic Ronan Lyons, who compiled the Daft report, said the tight availability of rental homes is a harbinger of rising rents.
“Unfortunately, the figures for February 1 suggest that, if anything, availability has worsened further since late 2021, with just 712 ads for rental homes in Dublin (down from 820 in November) and 685 in the rest of the country (up slightly from the all-time low of 640).”
But is supply really that tight? Lyons says a narrative has emerged that, while supply might be tight in the traditional rental market dominated by Section 23 and accidental landlords and pre-63s, new private rental sector (PRS) supply changes that picture.
He said high-profile rental developments in Dublin are filling up, with 80% occupancy reported in some.
“Some might say while four out of every five units being occupied is certainly better than none, if replicated across the city and country – and continued into the future – this would result in thousands of homes being left empty, at a time when Ireland desperately needs new rental homes.”
