Airbnb not the main cause of Ireland’s rental crisis, research finds

Eva Osborne

The ESRI has published new research, funded by the Department of Housing, providing insights into Airbnb usage across Ireland.

It has revealed that two-thirds of Airbnb listings are for entire properties, and they are concentrated in tourist hotspots along the west coast and inner-city Dublin and Galway.

Other key findings included there being at least one Airbnb for every 10 private rental sector properties in 38 out of 166 local electoral areas.

While certain areas have high numbers of Airbnb relative to private rental sector properties, the ESRI found no evidence linking increases in short-term let activity and falls in new rental tenancy registrations between 2019-2023.

This does not mean short-term let activity has not had a detrimental impact on the private rental sector in specific local markets, it said.

It does, however, suggest short-term let activity is not the primary cause of falling new rental commencements or the lack of available rental accommodation nationwide.

Strong relationship between current Airbnb listings and previously recorded holiday homes in non-urban tourist hotspots, with a lower correlation in urban areas.

This indicates that many short-term let properties, especially those in non-urban areas, might not be part of the PRS in the absence of Airbnb.

The ESRI said voluntary registration and change of use planning permission requirements for short-term lets in Rent Pressure Zones appear largely ineffective.

Measures may have discouraged some Airbnb hosts, but the number of applications received (91 in 2023) is very small relative to the number of entire property Airbnb listings in RPZs (9,142 in September 2023).

The current registration system and regulatory approach require reform which must cater for differences across local markets.

Different policy responses are likely to be required in urban areas with large rental markets, compared to coastal towns with more moderate rental sectors.

Commenting on the report, author Dr Rachel Slaymaker of the ESRI stated: “Understanding the dynamics of the short-term let sector and its interaction with the rental sector is crucial for informed policymaking.

"Our findings highlight the importance of establishing a register covering all short-term let activity across Ireland to provide timely data to be used in conjunction with rental sector data to monitor activity, changes in usage patterns and particular pressures in local areas.

"This is crucial for ensuring a balanced approach to regulation that considers both the need for tourist accommodation and rental housing for locals.”