Irish Rental Market Faces Supply Crisis, Driving Up Costs

National rents in Ireland rose by 4.4% in 2025, as a severe shortage of available properties continues to grip the market. The latest report from Daft.ie reveals a dramatic decline in rental availability, exacerbating affordability issues for tenants across the country.

Rental Costs Surge Across Ireland

According to the Daft.ie Rental Report, the average market rent for a two-bedroom apartment nationwide stood at €2,086 per month between September and December 2025 [1]. This represents an increase of 4.4% over the course of the year, exceeding the 3.6% rise recorded in 2024 [1].

Regional variations show significant increases, with Galway city experiencing the highest inflation at 11.4%, followed by Cork (7.5%), Waterford (6.9%), and Limerick (5%) in the final quarter of 2025 [1]. While Dublin saw rent inflation accelerate, it remained comparatively lower at 3% [1].

Record Low Availability

The report highlights a critical shortage of rental properties nationwide. On February 1st, there were fewer than 1,800 homes available to rent, a 22% decrease compared to the same date the previous year [1]. This represents the lowest level of rental availability since Daft.ie began tracking the data in 2006 [1].

Dublin is particularly affected, with a drop of over one-third in the number of rental homes available annually [1].

Impact of Rent Controls and Market Uncertainty

Ronan Lyons, report author and Professor in Economics at Trinity College Dublin, suggests that uncertainty surrounding new rent controls may be contributing to the supply shortages [1]. He notes that landlords may be delaying offering properties or considering selling due to the changing regulations [1].

Long-Term Trends

Market rents have increased in 13 of the last 14 years, rising by one-third above pre-COVID levels and 80% compared to a decade ago [1], [4]. The increasing popularity of room rentals is also a notable trend, particularly outside of Dublin, where the number of room rentals now matches the number of full property rentals [2].