Limerick renters paying up to €4,000 more per year as housing supply drops 16%
"Supply in Limerick City has dropped by 16% year-on-year, while at the county level, it has dropped by 15%," said Chief Economist and Director of Policy at Limerick Chamber, Seán Golden. Picture Dan Linehan
New tenants across Limerick are now paying between €3,500 and €4,000 more annually in rent payments as supply shortages continue to exacerbate the ongoing housing crisis.
New figures from Limerick Chamber show there were just 21 homes to rent in the city and surrounding areas in October, 10 less than the previous month, however, despite such a notable fall, the average rental cost remained high at around €2,000 per month, indicating a significant 17% increase from the same period last year.
As supply dwindles, the Chamber has warned the midwest's rental crisis has reached "a critical point," necessitating "immediate attention and action."
Similarly, Limerick County also witnessed a decrease in available homes for rent to 34, marking an 8% decrease in average rental prices from September but still reflecting a 23% increase from the previous year.
"Supply in Limerick City has dropped by 16% year-on-year, while at the county level, it has dropped by 15%," said Chief Economist and Director of Policy at Limerick Chamber, Seán Golden.
"At the same time, prices have increased by 23% across the whole county and 18% in the city. Meaning, new tenants would pay an additional €3,500 - €4,000 when renting now, compared to if they were to rent at the same period last year.
"While November brought some good news on the housing front, it will be a long time before the critical mass required by the rental sector is met.”
Despite notable falls across Limerick, County Clare saw a noticeable increase in available homes compared to the previous month, with 38 properties for rent, resulting in a 4% decrease in average rental costs, settling at €1,480.
In Tipperary, there was a 32% increase in available homes from September, reaching 33 properties, however, there was a significant decrease of 31% from October 2022.
Rental prices in Tipperary fell by 9% from the previous month but saw an 11% increase from the same time last year.
Overall, the total number of properties to rent in the midwest increased by 5 in the month to 106, carried by increased availability outside of Limerick which the Chamber said highlighted the "shifts in market dynamics," across the mid-west region.
“On the surface, October’s results appear somewhat positive," said Limerick Chamber economist and policy analyst, Eoghan Carr. "However, it would be imprudent to not mention the irregularity of the pattern of rental availability. Price remains excessively high, especially when compared to last year."
"Fortunately, for the midwest, the decrease in rental availability in Limerick has coincided with an increase in rental availability in Clare and Tipperary – as rental supply has grown since the previous month by 41% and 32% for Clare and Tipperary respectively.”
