Irish tenants’ share of outgoings on rent is sixth highest in world – study

Rent takes bigger slice of spending in only five other countries, says Money.co.uk

Rent is a high proportion of monthly goings for Irish tenants. Photograph: iStock

Rent is a high proportion of monthly goings for Irish tenants. Photograph: iStock

 

The cost of rent for Irish people as a percentage of their total monthly outgoings is the sixth highest in the world, according to a study by Money.co.uk.

Tenants in the Republic spend 37.2 per cent of their monthly outgoings on rent, a proportion that is higher only in Hong Kong, Singapore, Qatar, UAE and Kuwait, Money.co.uk said.

Its finding is based on statistics from cost of living database Numbeo and compares the average cost of rent for a three-bedroom property in more than 50 developed nations in the world as well as other costs of living for a family of four.

The figures place the average cost of rent in the Republic at €1,756 and other estimated monthly living costs at €2,961, leading to total monthly outgoings of €4,717.

The study follows recently published research by the Residential Tenancies Board (RTB), which found that half of tenants spend more than 30 per cent of their take-home pay on rent, while 12 per cent spend more than half their income on rent.

Tenants are paying on average 36 per cent of their net income on rent, the RTB found, with that figure surging to 64 per cent in the greater Dublin area.

According to Money.co.uk, Hong Kong is the only country where the average person actually pays more for their rent than all the rest of their living costs combined.

Rent is 50.25 per cent of total monthly outgoings in Hong Kong, it said, followed by 47 per cent in Singapore and almost 44 per cent in Qatar.