>THE rental crisis has worsened with costs for new tenancies shooting up by 9.2pc in the first three months of this year when compared to the same period last year.
New tenancies, not “rents” in general.
This is what happens with rent controls. You cannot afford to offer low rents so you have to over-price to ensure you maximise income. With inflation running high and rent increases capped below those rates, it’s going to make renting out property quite unattractive.
This is being driven by newly-built houses being added into the rental market. Since they haven’t been let before they aren’t affected by rental caps, and so the average new advertised rents are increasing as they make up a larger portion of new advertisements.
Over the next few years something like 50K new BTR apartments are going to be completed and enter the rental market in Dublin alone. We should see the average new advertised rent increase for a while longer, and hopefully we should start seeing declines (or at least slower growth in newly-advertised rental prices). If we can stop the exodus of existing landlords from the rental market that would also greatly help.
Rent controls going well I see. Strange when they seemed to work brilliantly in other cities.
/sarcasm
Imagine importing hundreds of thousands of people and scratching our heads wondering why we have a housing problem.
This is directly caused by not building _enough_ housing – we need to double or triple the amount of accommodation being built.
Any other excuse for this is just spin.
So if we see an increase in interest rates to cool spending and less people buy homes and more need to rent… this problem isn’t gonna get much better any time soon is it?
All foreigners fault according to some redditors.
Have you tried kill all the poor?
Or possibly, raise VAT and kill all the poor?
Yank here. I have a couple questions. Does Ireland have the same problem every other country has of people leaving the village and moving to the cities? Also, how many properties are vacation rentals? Are either of these things to blame or at least part of the problem?
Is it not from some landlords just being greedy, knowing the supply is short and then others just follow suit cause of sheep mentality or is it because of rental agencies just capitalising because they are the same as every other company…
Profit
10 comments
>THE rental crisis has worsened with costs for new tenancies shooting up by 9.2pc in the first three months of this year when compared to the same period last year.
New tenancies, not “rents” in general.
This is what happens with rent controls. You cannot afford to offer low rents so you have to over-price to ensure you maximise income. With inflation running high and rent increases capped below those rates, it’s going to make renting out property quite unattractive.
This is being driven by newly-built houses being added into the rental market. Since they haven’t been let before they aren’t affected by rental caps, and so the average new advertised rents are increasing as they make up a larger portion of new advertisements.
Over the next few years something like 50K new BTR apartments are going to be completed and enter the rental market in Dublin alone. We should see the average new advertised rent increase for a while longer, and hopefully we should start seeing declines (or at least slower growth in newly-advertised rental prices). If we can stop the exodus of existing landlords from the rental market that would also greatly help.
Rent controls going well I see. Strange when they seemed to work brilliantly in other cities.
/sarcasm
Imagine importing hundreds of thousands of people and scratching our heads wondering why we have a housing problem.
This is directly caused by not building _enough_ housing – we need to double or triple the amount of accommodation being built.
Any other excuse for this is just spin.
So if we see an increase in interest rates to cool spending and less people buy homes and more need to rent… this problem isn’t gonna get much better any time soon is it?
All foreigners fault according to some redditors.
Have you tried kill all the poor?
Or possibly, raise VAT and kill all the poor?
Yank here. I have a couple questions. Does Ireland have the same problem every other country has of people leaving the village and moving to the cities? Also, how many properties are vacation rentals? Are either of these things to blame or at least part of the problem?
Is it not from some landlords just being greedy, knowing the supply is short and then others just follow suit cause of sheep mentality or is it because of rental agencies just capitalising because they are the same as every other company…
Profit