'We need an emergency ban on rent increases': Report shows average rent in Cork city nearing €1.9k

RENTS in Cork city have increased by 8% in the last year, with the average rent now at €1,870.

The latest Daft.ie Rental Price Report shows the average rent in the city is now up 33% on pre-covid levels, although there was a 1.1% quarter-on-quarter decrease.

Outside of the city, market rents were 4.1% higher on average in the first three months of 2024 than a year previously, and the average listed rent is now €1,427 — up 37% from the level prevailing when the pandemic occurred.

The quarter-on-quarter change in the county was a decrease of 1.5%.

A big issue on the doorsteps 

The figures have promoted concerns from politicians, with Cork North Central People Before Profit-Solidarity TD Mick Barry saying that rent is coming up as a big issue on the doorsteps — both from young people “who are either being ripped off or locked out” as well as from their parents.

Sinn Féin councillor for Cork City South-West, Orla O’Leary, raised concerns that a generation of workers and families in Cork city are paying a heavy price each month for “extortionate rents that keep going up and up”.

“We need an emergency ban on rent increases for three years,” she said.

“I’ve met families while out canvassing who tell me that the rent is crippling them,” said Ms O’Leary.

“Thousands of families are stuck paying rip-off rents when they should have a fair rent in a social home or a genuinely affordable home to buy.”

Average rents 

According to the report, the average rent for a one-bedroom apartment in Cork City is €1,239, the average rent for a two-bedroom house is €1,524, the average rent for a three-bedroom house is €1,808, the average rent for a four-bedroom house is €2,360 and the average rent for a five-bedroom house is €2,347.

The average rent for a one-bedroom apartment in Cork county is €957, the average rent for a two-bedroom house is €1,153, the average rent for a three-bedroom house is €1,358, the average rent for a four-bedroom house is €1,575 and the average rent for a five-bedroom house is €1,567.

Rent v mortgage payments 

The report also compared average rent and mortgage payments (based on a mortgage with a 4% interest rate for a term of 30 years and a 90% LTV).

It found that in Cork city, the average mortgage for a one-bedroom apartment is €611, while the average rent is €1,239.

The average mortgage for a three-bedroom house in the city is €1,173, while the average rent is €1,808.

In the county, the average mortgage for a one-bedroom apartment is €484 and the average rent is €957, while the average mortgage for a three-bedroom house is €841 and the average rent is €1,358.

The report showed that market rents in Munster rose 5.9% year-on-year, compared to an increase of 11.6% increase seen in early 2023.

It noted that the increase in rents reflects very low availability, with only 240 homes available to rent on May 1 — just one quarter of the 2015-2019 average.

Nationally, on May 1, just over 2,000 homes were available to rent “effectively unchanged on the same date a year previously”.

Need for more building

Fianna Fáil councillor for Cork City South-West, Fergal Dennehy, said that at the moment there is a lot of pressure on the rental market because there are so many people renting.

“The only way we’re going to reduce that, in addition to the rent caps that are already in place, is by reducing demand, and we reduce demand by building more houses such as social, affordable, right-sizing, and cost rental,” he said.

“Last year, Cork City Council provided over 1,000 social, affordable, and right-sizing homes and we need to keep this up and keep getting the mix right. That is the only way that we will reduce the pressure on the private rental market, particularly social and affordable homes for people currently in the rental market who do not qualify for social housing but don’t earn enough to buy a house.

“We still have a long way to go, but the simple answer is to just build more houses, but there needs to be different types of housing to cater for people in different categories.”

Independent councillor for Cork City North-East, Kenneth O’Flynn, said it is “crucial” to look at best practices from countries like the Netherlands and Germany to implement better renting standards.

“Additionally, assessing lending practices with banks and ensuring affordability for young people to enter the property market are key components that need to be considered,” he said.