Rents across Dublin have risen by 26 per cent since 2011, meaning many students arriving in the capital are struggling to find accommodation due to a severe shortage of affordable housing.
Figures released yesterday reveal that in Dublin rental prices have jumped by 15 per cent in the past 12 months, with a year-on-year increase of 17.2 per cent in the city centre. Only 2,000 properties were available for rent in Dublin on August 1st.
Rents outside Dublin are also increasing, with prices rising by 6 to 7 per cent a year in Cork, Galway and Limerick, their highest rate of inflation since early 2007.
The price of rent in Dublin’s commuter counties has also risen by 10 per cent, according to the research by Daft.ie.
Following the release of yesterday’s CAO points, students beginning third level studies now face not only rising rental prices but the prospect of not being able to find accommodation.
Ronan Lyons from Daft.ie says Ireland has a growing population but not a growing housing stock, which is putting pressure on the housing and rental market.
No new supply
“As there is no new supply in the major cities, landlords can be quite fussy about tenants,” said Mr Lyons
“They’ll typically look for young families over professionals, professionals over students, students over low earners.”
Young people studying in Dublin will now have to consider renting a room in a stranger’s home as a more affordable option while at university.
“With elderly couples and single occupants living close to universities, the old-school model of digs is probably going to come back this year, otherwise it’s unclear how we’re going to meet the needs of our students,” said Mr Lyons.
Domhnall McGlacken-Byrne, student union president at Trinity College Dublin, said there was going to be a “bottleneck” of incoming students looking for a place to live.
“We’re telling students to prepare further in advance,” said Mr McGlacken-Byrne.
“They really need to do their research now instead of simply leaving it till the week before term starts. That’s too late.”
Commute from home
Mr McGlacken-Byrne said some students in Dublin may opt to commute from home in favour of paying inflated rental prices. With the 15 per cent jump in Dublin’s rent, a student who was paying €500 a month will now have to find a supplementary €75 to keep a room.
The Union of Students in Ireland will today publish a new accommodation and finance guide to support students in facing these challenges, particularly those moving away from home for the first time.
Daft.ie’s figures reveal a significant rise in rents in central and south Dublin. In Dublin 6, a single room now costs €417 a month, an increase of 10 per cent on this time last year. A double room costs €523 (a 6 per cent rise), while a two-bedroom home costs €1,349.
In Maynooth, a single room costs €314, a double room €387 and a two-bedroom home is €951.
In Cork city a single room will cost students €277, up 4 per cent, a double room costs €345 (a 4 per cent increase) and a two-bedroom home is €829. Prices were found to be similar in Galway.
Figures from the Private Residential Tenancies Board show similar findings with the cost of renting a two-bedroom home in Ranelagh in the first quarter of 2014 at €1,329.
The board also found that renting a two-bedroom home in Cork city cost €838.