Ireland Rental Market: Rent Hikes Slow in Q2 Amid Persistent Supply Shortage

Irish Rental Market Growth Slows in Q2 as Daft Report Highlights Supply Pressures

The Q2 increase sits slightly below the average quarterly rise observed over the last decade, according to Daft’s findings. Professor Ronan Lyons, an economics professor at Trinity College Dublin and author of the report, stated that the spring figures offer a clear read on the impact of the new rent-control system. Lyons noted that the severe surge in early 2026 functioned as a one-off reset rather than the establishment of a lasting upward trend.

Despite the moderating quarterly rate, year-on-year inflation remains elevated. National open market rents are up 7.7% compared to the same period in the previous year. Sitting tenants, however, have experienced much smaller adjustments, typically averaging around 2.5%, according to Lyons.

Regional Variations and Rental Inflation in Major Cities

While the national quarterly growth rate has normalized, rental inflation persists strongly in major urban centers outside of the capital. Daft’s Q2 data reveals that market rents climbed 13% year-on-year in Galway city. Cork experienced a 12% annual increase, while Limerick saw rents rise by 11%.

Waterford city recorded an annual inflation rate of 5.5%, aligning closely with Dublin, where market rents in June stood 6.5% higher than a year prior. Across the broader regions outside the major cities, annual rent inflation ranged between 9% and 10% across Leinster, Munster, and Connacht-Ulster.

In monetary terms, the average market rent for a two-bedroom apartment nationwide reached €2,204 per month. In Dublin, the average cost for a similar two-bedroom property stands significantly higher at €2,634 per month. Despite these high figures, Lyons noted that the additional cost of renting in Dublin relative to the rest of the country has dropped to its lowest level on record.

Diverging Availability Trends Across Dublin and Regional Ireland

Rental availability presents a sharply divided picture across the country. At the beginning of August, just under 2,400 homes were available to rent nationwide, marking a 5% increase compared to the same date last year.

That overall increase masks a deep urban-rural divide. Availability in Dublin fell by 18% over the twelve-month period, dropping to fewer than 1,150 available homes in the capital. Conversely, rental stock across the rest of the country rose by 40%.

Lyons explained that the rebound in listings observed since March has largely served to offset earlier delay rather than inject genuinely new housing stock into the market. Across the entire state, total available listings remain well below pre-pandemic norms, during which typically more than 4,300 homes were listed for rent at any given time. Lyons emphasized that the core crisis driving high costs remains a fundamental shortage of homes available for the number of people looking.