The average cost to rent a home in Galway city is now more than €1,200 as rental prices climbed by 1.7% in the first quarter of 2019.
Newly released figures from Daft.ie shows that the average cost of rent in Galway city is now €1,260, a growth of 11.4% year on year.
Prices also climbed out in Galway county, with the average rent standing at €906, up by 2.1% in the first three months of this year and 16.6% higher than in the same period last year.
Economist Ronan Lyons who complied this report said that the Irish rental sector remains “starved of supply” and that this is driving up prices.
On May 1 there were just 2,700 rental properties available in Ireland according to Daft.ie, the lowest number since the beginning of 2006.
“This is the lowest ever figure for stock on the market, in a series that goes back to the start of 2006,” said economist Ronan Lyons who compiled this report.
“The length of this series allows us to put the current rental shortage into perspective. During the Celtic Tiger period, rental stock bottomed out at just under 4,400 in early 2007.”
“Only once in the 41 months and counting since the start of 2016 has the number of rental homes on the market been above this Celtic Tiger low – and that was in December of that year, an atypical month in the rental market.”
Nationally rents rose by 1.5% in Q1 2019 according to Daft, with the average cost to rent a home in Ireland now standing at €1,366.
For people in Galway renting a room in a home, it now costs an average of €453 for a single bed room in the city centre, €396 in the suburbs, and €380 across the rest of Connacht.
A double bed room will set you back €502 a month in the city centre, €465 in the suburbs, and €429 in the rest of Connacht.
Ronan Lyons warned that prices will not drop until the shortfall in supply is addressed, but that some economists are making a dangerous argument that new builds aren’t helping.
“Supply cannot be the answer because newly built rental supply, for example in the form of purpose-built student accommodation or more recently “PRS” built-torent homes – is expensive.”
He warned that this argument misses the point that the more new builds come on the market, the more it drives down prices in older accommodation.