Are you feeling the pinch? Because Irish renters are, big time. A new report reveals that average rents across the country have surged by a staggering 4.3% in just one year. But here's the kicker: this isn't just a blip; it's the eighteenth consecutive quarter of rising rents, according to Daft.ie's latest rental market analysis, updated November 13th, 2025.
Think about that for a second. Eighteen straight quarters of increases. And this is the part most people miss: these aren't just small increases. Rents are now a third higher than they were before the pandemic hit, and a jaw-dropping two-thirds higher than the peak of the Celtic Tiger era back in 2007. Ouch!
So, what does this translate to in real terms? Well, if you were looking to rent a typical two-bedroom apartment anywhere in Ireland between June and September of this year, you were likely facing an average monthly rent of €2,080. That's a significant chunk of anyone's income!
Now, you might be thinking, "Okay, Dublin is always expensive. This must be driven by the capital." And while Dublin is certainly pricey, the report actually shows that rental inflation is lower in Dublin compared to the national average. In the third quarter, Dublin rents rose by 2.7%, while the national average hit that 4.3% mark. This suggests the rental crisis is spreading beyond the capital.
But here's where it gets controversial... While Dublin's increase is lower, other cities are exploding! Cork city saw a year-on-year rent increase of 9.3%. Galway and Limerick are both up by 6%, and Waterford city takes the crown with a massive 11.4% increase. Even outside the major cities, rental inflation is still running at a concerning 5%.
Why is this happening? The Daft.ie report points to one glaring issue: a severe lack of supply. As of November 1st, there were just over 1,900 homes available to rent nationwide. That’s a 21% drop compared to last year, and less than half the average for the period between 2015 and 2019. In Dublin alone, the stock of homes to rent has plummeted by almost a third year-on-year.
Daft.ie, which has been producing its housing market analysis – "The Daft Report" – since 2005, is marking 20 years of reports with this latest release, which has been revamped with an updated methodology and new metrics, including data on room rents as well as full property rentals. This provides a more comprehensive picture of the rental market than ever before.
Ronan Lyons, Professor in Economics at Trinity College Dublin and the report's author, emphasizes the core problem: "For all the work involved in the new report, however, the picture remains unchanged - this is a market starved of supply." He also notes that while the easing of inflation from over 13% in 2022 to 4.3% now is welcome, the sharp fall in availability suggests further upward pressure on rents is inevitable in the coming quarters.
Lyons, speaking on Morning Ireland, highlighted the uneven distribution of rent increases across the country, attributing it to a reshuffling of rental demand, particularly due to the rise of hybrid working. He pointed out that while Dublin rents have increased by about 18% in the last five and a half years, Connacht and Ulster have seen a staggering 76% increase during the same period.
He also mentioned that new rental stock had come on stream in Dublin, but not elsewhere, but that this supply is now drying up, while new rental development is not coming onstream elsewhere. This translates into significant upward pressure on the rental market, according to Lyons, who added that the last time supply was so tight was in 2022.
The report concludes with a stark warning: significant amounts of new rental supply, all around the country, are needed to change conditions in the rental market, and this will take years.
So, what do you think? Is the government doing enough to address the rental crisis? Are rent controls the answer, or do they stifle investment in new housing? And what impact will the rise of remote work have on rental markets in different parts of the country? Share your thoughts and experiences in the comments below!
