Carlow rents surge 10.9% as housing crisis deepens

CARLOW renters are facing increasingly unaffordable housing costs as average rents in the county have jumped by 10.9% in the past year, according to the latest Daft.ie Rental Price Report for the first three months of 2025.

The report reveals that the average monthly rent in Carlow now stands at €1,649, reflecting a sharp quarterly increase of 5.9% between January and March alone. This places Carlow among the counties experiencing the most severe rental inflation in the country.

Sinn Féin MEP for Ireland South, Kathleen Funchion, has described the situation as “a shameful failure of government policy”, noting that eight of the top ten counties with double-digit inflation are in the Ireland South constituency.

Speaking from Brussels, Ms Funchion said: “The latest Daft.ie report will unfortunately come as no surprise to those who are renting and those who are working in the sector.” 

The report, written by Trinity College Dublin economist Ronan Lyons, highlights a concerning trend across the Irish rental market. Nationally, listed rents rose by 7.3% in the year to March 2025, with an average monthly rent now reaching €2,023.

The housing shortage driving these increases appears to be worsening. Only 2,300 homes were available to rent nationwide on 1 May, down 14% from the same time last year. This marks the third-worst May figure in two decades.

In his analysis, Mr Lyons criticises recent policy approaches, stating: “It is imperative that the new government avoid the trap fallen into by the last one in thinking that the only determinant of new homes built is the budget given to housing. The government is not just the funder, it is also the referee.” 

The economist advocates for reform of the Rent Pressure Zones system, suggesting that aligning with standard practices in other countries with rent controls would benefit tenants in the long run by encouraging new supply.

Ms Funchion warned that under current government policies, “housing in these counties will only continue to increase and we’ll see a situation where fewer people will be able to afford to live and raise families here.” 

The MEP said she was hosting a conference on housing in the European Parliament, adding that “Irish housing is the most expensive in the EU, and that the current government is either not capable or not serious about finding a solution.” She called for a dramatic increase in social and affordable homes, support for SME builders, a three-year ban on rent increases and “putting a full month’s rent back into every renter’s pocket”.