Housing Crisis in Dublin: Landlords Say It’s a Hard Time to Make Money

Dublin’s rental market continues to face intense pressure, with landlords reporting declining profitability amid rising costs and regulatory challenges. Recent reports indicate that some properties in Dublin 2 are housing up to four tenants in a single room, highlighting the severity of the housing shortage and the lengths to which some are going to accommodate demand. However, landlords insist that such arrangements are not profitable and reflect a market where making money from rental properties has become increasingly difficult.

The Reality of Rental Profitability in Dublin

Contrary to perceptions of landlords benefiting from high rents, many property owners in Dublin say they are struggling to cover expenses. According to the Irish Property Owners Association (IPOA), mortgage interest payments, insurance, maintenance costs, and compliance with evolving rental regulations have significantly eroded net returns. A 2023 survey by the IPOA found that over 60% of landlords reported making little to no profit after expenses, with nearly 20% operating at a loss.

“It’s a hard time to make money as a landlord in Dublin,” said one Dublin 2 property owner speaking to The Journal. “Between rising mortgage rates, stricter tenancy laws, and the cost of bringing properties up to standard, the returns just aren’t there anymore.”

Regulatory Pressures and Compliance Costs

Recent changes to Irish rental law have added financial and administrative burdens on landlords. The Residential Tenancies (Amendment) Act 2021 introduced rent pressure zones (RPZs) in parts of Dublin, limiting how much landlords can increase rent annually. While intended to protect tenants, landlords argue these caps prevent them from keeping pace with inflation and rising costs.

the introduction of mandatory property registration with the Residential Tenancies Board (RTB), periodic inspections, and requirements for energy efficiency upgrades under the Housing (Standards for Rented Houses) Regulations 2019 have increased compliance costs. The Sustainable Energy Authority of Ireland (SEAI) estimates that bringing an older Dublin property up to BER B2 standard can cost between €15,000 and €30,000—expenses many small landlords cannot absorb without raising rents, which RPZs restrict.

Supply Constraints and Market Pressures

Dublin’s housing shortage remains acute. The Housing Agency reported in early 2024 that the city needs over 20,000 new homes annually to meet demand, yet construction output consistently falls short. With limited supply and high demand—driven by population growth, inward migration, and a lack of affordable alternatives—competition for rental units is fierce.

This imbalance has led to reports of overcrowding, including instances where multiple tenants share a single room in Dublin 2 apartments. While such arrangements violate housing standards, they persist due to desperation among tenants and, in some cases, landlords attempting to maximize occupancy in the face of low returns.

However, experts warn that overcrowding is not a sustainable or profitable strategy. “Packing more people into a room doesn’t solve the landlord’s profitability problem—it increases wear and tear, liability, and the risk of regulatory penalties,” said Dr. Lorcan Sirr, housing economist at Technological University Dublin.

Landlord Exit and Market Implications

Financial strain is prompting some landlords to exit the rental market entirely. Data from the Revenue Commissioners shows a steady decline in the number of private rental properties declared for tax purposes in Dublin over the past five years, with over 12,000 properties removed from the rental register between 2019, and 2023.

Many are selling to owner-occupiers or converting properties to short-term lets—though the latter faces its own restrictions under Dublin City Council’s short-term letting regulations, which require planning permission in most areas.

The reduction in long-term rental supply exacerbates the housing crisis, creating a feedback loop: fewer available homes drive up competition and prices, which in turn triggers more regulatory responses that further discourage investment in rental housing.

Path Forward: Balancing Tenant Protection and Investment Incentives

Industry stakeholders argue that sustainable solutions must address both tenant affordability and landlord viability. The Irish Congress of Trade Unions (ICTU) and housing NGOs have called for increased public housing investment, while landlord representatives advocate for tax relief, faster eviction processes for problematic tenants, and grants for energy upgrades.

“We’re not against regulation—we need standards and fairness,” said a spokesperson for the IPOA. “But if we seek to maintain a functioning rental sector, policymakers must recognize that landlords are not all large corporations. Many are individual investors relying on rental income to supplement pensions or cover mortgages. If it’s not viable to stay in the market, they’ll leave—and tenants will suffer the consequences.”

Conclusion

The image of up to four people sharing a room in a Dublin 2 house underscores the depth of the city’s housing emergency. Yet, contrary to assumptions that landlords are profiting from the crisis, many say they are barely breaking even—or losing money—due to rising costs, regulatory constraints, and market pressures.

Without measures that support the financial sustainability of private rental housing—such as targeted tax incentives, streamlined regulations, and investment in social and affordable housing—Dublin risks further erosion of its rental stock. Addressing the crisis requires balancing tenant protections with policies that encourage, rather than deter, investment in quality rental homes.

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