While housing prices are beginning to level out, rental costs in Dublin, Cork and Limerick is skyrocketing.
Over the last year, rents have increased by almost 12% while rent inflation is now at its highest level since 2002, according to a report released today by property website Daft.ie (read their report here).
The Daft Rental Report also shows the supply of properties available for people who want to rent has dropped by about 20% in the last year.
Factors like investors selling off their Irish rental properties, people staying in their current accommodation because they can not afford to move and high levels of immigration are all attributed to the decrease in available property.
The nation's average monthly rental is now €1,382, an increase of approximately €150 since the same time last year.
Dublin rents are up an average of 12% with areas close to the city centre seeing the greatest increase.
However, the largest increases in rents have been in four and five-bedroom properties in south Dublin where rents have increased by up to 50% in the last year.
Outside the capital, rents in Cork and Limerick cities have increased by 14%. While in Galway and Waterford cities rents are up by just over 6%.
Outside the major urban areas, rents have increased by 3% on average during the past year.
Compared to CSO figures, this new report suggests the average increase in earnings is not keeping up with the increases in rent.
