Rental prices in the private housing sector have risen more quickly than the cost of owner-occupied homes in the first three months of the year. The latest figures highlight growing pressure on tenants as rents continue to climb at a faster pace than both housing prices and overall inflation.
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Strong Growth in Rental Costs
In the first quarter, new tenants paid an average of €21.12 per square meter, which is 7.3 percent higher than the same period last year.
Apartments saw the biggest jump in prices. At present, more than 42 percent of available private sector homes come with monthly rents above €2,000. This is the second quarter in a row where rent increases have been higher than the rise in home prices and inflation.
Slower Rise in Home Prices and Inflation
In comparison, the cost of existing owner-occupied homes increased by 5.4 percent in both January and February compared to a year earlier. Inflation also remained lower than rental growth, reaching 2.
7 percent in March, after recording 2.4 percent in both January and February.
Falling Supply and Reduced Demand Pressure
During the first quarter, close to 13,000 private rental homes became available for new tenants.
However, more homes were withdrawn from the market than added, leading to a net drop of 1,869 properties. Even with fewer homes available, demand appears to have eased. On average, each property received 25 responses, which is 46 percent lower than last year and the lowest level since the second quarter of 2021.
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