RENT RISES SLOW DOWN
The rise in prices in the rental sector has slowed for the first time since 2009. The latest quarterly daft report has found that although rents have continued to rise nationally, that rise has started to ease off. This slowdown is especially marked in the Dublin area.
By January the rise in rents in the capitol had dropped to under 10% from a high of 16.5% in the previous quarter. The average price for a one bedroom home in the Dublin 8 area now stands at an eye watering €995
Commentating on his own report TCD economist Ronan Lyons said “ The slow-down in rental inflation in Dublin at a time when new listings are sluggish suggests that a limit to affordability has been reached “. He goes on to say that “ lack of construction in a city growing by roughly 10,000 new families every year has created a new generation of commuters, one driven not by preference for green space but by the hard maths of affordability
In essence the slowdown in rent rises is not due to a greater availability of homes but because people can’t afford to pay anymore, and this very lack of affordability is driving people out of the city.
