Rents in Dublin fell by almost 7% since the Covid-19 pandemic took hold - but the national average has increased by more than 7%, new research shows.
The Daft Rental Report found that letting prices in Dublin fell by 6.5% in the first quarter of the year compared to the same period in 2020.
The average rent in the capital now stands at €2,007 per month.
Outside of Dublin, rents were 7.1% higher in the first quarter of the year than they were in 2020.
Renters outside the capital are paying an extra €900 per year as the new national average is €1,443.
In Cork, Galway and Limerick cities, rents are 6% higher than a year previously.
In Waterford, it costs 8.3% higher than 2020.
Leitrim is the least expensive county, with average rents of €655 per month. Donegal is the second least expensive at €704 per month, followed by Longford at €782 and Roscommon at €783.
South County Dublin is the most expensive area to rent, at an average of €2,221 per month, followed by South Dublin City at €2,111, Dublin City Centre at €1,974, and North Dublin City at €1,941.
Supply has increased in Dublin, with 20% more properties available to rent compared to 2020. There are around 2,500 homes available to rent in the capital at present.
However, supply remains low in other parts of the country. Just 1,150 homes are available to let outside of Dublin, which is a decrease of a third compared to 2020.
Economist at Trinity College Dublin and author of the Daft report Ronan Lyons said the Covid-19 crisis has had different impacts on the rental sector in Dublin and the rest of the country.
He said: "The impact of Covid-19 on Ireland’s rental market was largely to send Dublin and the rest of the country in different directions.
"In Dublin, additional supply moving over from the short-term lettings market coupled with a temporary halt to people moving to the city pushed rents down.
"Elsewhere, lockdown ground the rental market to a halt, with fewer listings pushing rents further up.
"As normal life resumes over the coming months, these differences are likely to fade and more long-standing problems – in particular chronic undersupply of new rental homes – will be the main driver, within a broader context of economic and population growth."
Mr Lyons also said it is crucial that the Government stops investment funds from buying homes that would be otherwise bought by first-time buyers looking to exit the rental market.
"It is imperative that housing policy in general – and rental market policy in particular – be driven by an understanding of the challenges and required solutions, rather than news-cycle pressures.
"Limiting the country’s ability to harness foreign savings to build the rental homes it needs – for example, by limiting the ability of professional landlords to invest here – will worsen, rather than improve, the situation.
"The doubling of rents over the last decade is all the proof needed that Ireland needs to build tens of thousands of new rental homes over coming years.”
