With just under 1,400 rental properties available across the State, the low availability of stock has continued to push rent increases, according to new figures from Daft.ie.
In the final quarter of 2021, market rents were 10.3 per cent higher than the same period in 2020.
Meanwhile, the average monthly rent nationwide was recorded at €1,524 between October and December 2021.
It comes as there were just 1,397 homes available to rent on February 1st this year.
Weak rental supply
Dublin saw a significant jump in rent prices, with an 8.9 per cent increase in the final quarter of 2021 compared to the same period the year before.
The capital now has an average listed rent of €2056, which is up 100 per cent from its lowest point in 2011.
According to Daft.ie, the number of homes available to rent in Dublin has collapsed over the last year, with just 712 live rental ads on February 1st, the lowest on record.
Elsewhere, across the State, rents were up 10.3 per cent in the final quarter of 2021 compared to the same period in 2020.
The average monthly rent nationwide stood at €1,524 between October and December 2021. This is up 3 per cent on the first quarter and double the lowest price in 2011 which was €765 per month.
Commenting on the report, Ronan Lyons, Associate Professor of Economics at Trinity College Dublin and author of the Daft Report, said: “The strong rebound in economic activity, as public health restrictions relax, has translated into a strong demand for rental accommodation.
“Coming at a time of very weak rental supply, this has pushed rents up further, with inflation at its highest rate nationwide since early 2018.
“The number of live rental ads is at its lowest ever on record, with fewer than 1,400 live ads on February 1st.
“As new purpose-built rental stock is completed, availability of rental homes will be better measured by capturing development-specific vacancy rates, as well as ads.
“An analysis of over 60 existing purpose-built rental communities indicates over 90 per cent occupancy across their nearly 8,000 homes.
“Figures for a further 12 developments coming on stream in early 2022 suggest brisk take-up of new homes.
“Even if the 1,700 homes due to become available in the first half of 2022 were added to the existing stock of rental ads, the number of homes available to rent in Dublin now would be below the level seen a year ago.
“As ever, the solution remains in the construction of large numbers of market- and cost-rental housing, to cater for tenants of all incomes.
“Reform of rent controls would also enable new rental homes to be absorbed faster.”
Following the publication of the Daft.ie Rental report for Q4 2021, the Institute of Professional Auctioneers & Valuers (IPAV) said the data does not "reflect the market in its entirety".
Pat Davitt, IPAV’s chief executive, said that due to the very high demand for properties, many auctioneers no longer have the need to advertise properties on portals to secure rents.
“Most auctioneers have several potential clients for each property that becomes available,” he said.
Mr Davitt also mentioned that he had been seeking figures from the Residential Tenancies Board (RTB) to reflect the levels of rents currently been charged for all rental properties, not just new rentals in each quarter, which is captured in the Daft.ie report.
“It is regrettable that from a policy formation perspective such data is not currently available. This is the case despite the fact that all tenancies must be registered with the RTB,” he said.