THE average rent in Waterford has now soared to €1,148, up 102% from its lowest point.
The increase in rents around the country reflects an on-going and unprecedented scarcity of rental homes and rents in the third quarter of 2021 were an average of 6.8% higher than the same period in 2020.
But Waterford has been hit hard, according to the latest Daft report for Q3, 2021.
In Waterford City, rents have risen by 10% in the last year and the average rent is now €1164. In the rest of Waterford, rents were on average 15.9% higher in the third quarter of 2021 than a year previously. The average listed rent is now €1148.
Rents in Dublin are just 2.7% higher than a year ago, while rents in Cork and Galway are 6.9% and 8.3% higher. Inflation in Limerick and Waterford cities is higher again, at 8.9% and 10% respectively, while rents outside the cities are 11.9% higher than a year ago.
problems of shortages are getting worse over time
Reflecting on the latest figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said: “Covid-19 temporarily reshuffled Ireland’s rental problems but the latest figures confirm those problems of shortages are getting worse over time.
“While Dublin had initially seen an increase in rental availability, with the number of rental homes on the market doubling from 1,600 to nearly 3,200 in 2020, those trends have reversed rapidly, with just over 800 homes available to rent on November 1st. In Ireland’s four other cities, there were 81 homes available to rent in total.
“While some argue against the construction of large numbers of purpose-built rental homes, any solution to the chronic shortage of rental homes in Ireland must include building new ones.
“In this regard, the pipeline of almost 45,000 new build-to-rent homes – while concentrated in the Dublin area – is particularly welcome. More than 50,000 more rental homes have been proposed. Their construction would help improve the availability and affordability of rental homes, something for policymakers and planners to consider,” he said.
any solution to the chronic shortage of rental homes in Ireland must include building new ones
At present, there are just 12 properties to rent in Waterford County and only 13 in Waterford City. To compound issues, a surge in demand is sending asking prices up for those hoping to buy outside the capital, as more people consider working from home.
A report by real estate group RE/MAX found that asking prices increased 9.1% nationally in the year to the end of the third quarter of 2021, putting the average list price for homes nationwide in the third quarter of this year at €287,704.
In Waterford city, asking prices rose 6.3% in Q3 2021; however, in Waterford county, list prices rocketed by 17.5%.
In areas within commuting distance of Dublin, like Carlow, asking prices rose by 14.4% on the year to an average list price of €226,391.
