Rental scarcity a ‘national problem’, according to report

By Cillian Sherlock, Press Association

A surge in rents after the Government’s tenancy reforms appears to be a “short-lived” jump based on the possibility of one-off resets rather than a new market dynamic, according to new analysis.

Trinity College economics Professor Ronan Lyons has also flagged that the rental scarcity is no longer a problem confined to Dublin or urban areas – but has spread to a national issue.

His commentary accompanies the latest Daft.ie report into the rental market which found that, having risen by a record 4.4 per cent in the first quarter, the rise in market rents eased to 1.4% between March and June.

Rental scarcity is a national problem.

Prof Lyons said: “The second quarter offers a clear read on the impact of the new rent control system.

“It suggests that the surge in rents in early 2026 was a one-off reset rather than the start of a new trend.”

He added: “That adjustment appears to be largely complete in major cities, even if it is still working its way through the rest of the country.

“On supply, the rebound in listings since March has persisted but it is in effect merely offsetting the earlier delay rather than adding new supply.

“Over the past 12 months, the number of homes listed to rent was effectively unchanged on the previous year.”

The report’s author also highlighted “an important shift in the market” with the additional cost of renting in Dublin relative to the rest of the country falling to its lowest level on record.

Prof Lyons said: “This has happened even as rents in Dublin have continued to rise, with rents in the city one quarter above their pre-Covid level.

“Rents elsewhere have risen far faster, however: by 90 per cent in Connacht-Ulster and 75 per cent in Munster in six years.

“Rental scarcity is a national problem, and measures to bring forward new market rental supply need to be capable of working outside Dublin.”

Daft.ie said the 1.4% increase in market rents in Q2 is a “significant slowdown” from Q1 and is slightly below the average quarterly increase seen over the last decade.

It puts the average market rent for a two-bedroom apartment nationwide at €2,204 per month.

In Dublin, the average market rent of a two-bedroom apartment is up 6.5 per cent to €2,634.

There were just under 2,400 homes available to rent nationwide on August 1st.

Daft.ie said that this five per cent increase compared to the same time in 2025 “masks a sharp divide” where availability in Dublin fell by 18 per cent over the year, to fewer than 1,150 homes, while across the rest of the country it rose by 40 per cent.

It is also well below the pre-pandemic norm of more than 4,300 homes available to rent at any one time.