The availability of rental homes in Ireland’s Mid-West region has significantly decreased, with prices soaring by nearly 30% due to the shrinking supply. The latest Mid-West Rental Monitor, published by Limerick Chamber, highlights the impact of rising rental prices on people’s ability to save for a home, exacerbated by the current interest rate environment. Seán Golden, chief economist at Limerick Chamber, emphasized the urgent need for affordable rental options in the region.
In the past year, the number of homes available for rent in Limerick, Clare, and Tipperary has dropped from 173 to just 87. Meanwhile, the average rental price has increased from €1,329 to €1,549, reaching its highest level since August 2022. Limerick city and suburbs have experienced a more than 50% decrease in rental properties since August last year, with average prices rising by 19%, resulting in an additional annual expenditure of nearly €3,700 for new tenancies.
County Limerick currently has only 46 homes available for rent, representing a marginal increase of two from the previous month, with average rent just below €1,800. Clare and Tipperary have witnessed a dramatic decline in available rental properties, with a decrease of 61% and 65% respectively over the past ten months. In June, only 22 homes were listed in Clare, accompanied by a 9% increase in rents during the same period. Similarly, Tipperary saw a drop from 55 properties in August last year to just 19, with rents also experiencing a slight increase to €1,146.
As the supply diminishes, the quality of available rental properties in the region has also deteriorated. Economic and Policy Analyst Eoghan Carr highlighted the low Building Energy Ratings (BER) of most rental homes, leading to higher energy bills for tenants. Carr emphasized the need for increased efforts to retrofit older homes and bring them up to modern standards, making it a priority for Budget 2024.
In conclusion, the Mid-West region of Ireland is facing a severe shortage of rental homes, resulting in skyrocketing prices. This has significant implications for people’s ability to save for a home, as well as the quality of available properties. Urgent action is required to address this issue and provide affordable rental options for individuals and families in the region.