Bad news for students this week as figures released by Daft this week have shown an average nationwide rent increase of €150 a month, a total rise of 11%.
Over the last two years rent has risen nationally from €790 a month to €933. The report from Daft claims that the national drive in rent prices is coming from Dublin, with the capital’s rent increasing by €300 since 2012.
The cost of rent in Dublin has increased by 17% since last year. Despite this, Daft claim that the increasing prices in the capital have slowed down for the first time in five years.
The report, compiled by Ronan Lyons, Assistant Professor of Economics at Trinity College, says that rent has risen nationally by 11%. Counties surrounding the capital have seen large increases in price, with Meath witnessing an 11% growth, Wicklow 13% and Kildare 14%.
The number of properties available on the rental market have also dropped significantly. Fewer than 5,400 properties were available nationwide on the online property website Daft this month, the lowest it has been since May 2007. The lack of available properties has resulted in rent prices soaring.
Ronan Lyons commented on the report saying that the lack of available properties to rent is more concerning than the high rental rates.
“Clearly the two phenomena are inextricably linked. The only silver lining is the fact that this quarter was the first time in five years that rent inflation in the capital eased somewhat.
“However, even if an easing in Dublin inflation continues and stops the affordability crisis from worsening, it does nothing to change the availability crisis,” he said.
Less than 500 properties are currently under construction by Dublin City Council on land under their control, which Mr Lyons expressed his concern about.
“The lack of housing supply was particularly worrying as Dublin’s population is growing by roughly 10,000 households a year,” he said.
Leitrim remains the cheapest place to rent in the country, with the average rental price being €422 a month. Other significant increases outside the Dublin commuter belt are Laois, up 8.1% on last year, Kilkenny, up 7.8% and Galway, up 7.0%.
This increase in rental prices is bad news for students who already feel the burden from college fee and rises in transport costs.
Nicole Whyte (22), a nursing student in DCU, told The City that she had to consider commuting from her hometown in Monaghan for her final year.
“My rent has nearly doubled since first year, from €240 to €416, and now I’m in my final year I’ve considered commuting from Monaghan.
“If you take into consideration the increase in transport and the cost of living, it’s a struggle to stay in Dublin. Unfortunately I’m on placement for most of the year so I have no alternative but to rent,” she said.