Ireland's Housing Crisis Deepens: Rents Up 81% in a Decade, Supply Critically Low
Ireland's housing crisis is escalating, with rents up 81% in a decade and supply at a critical low of 2,374 homes nationwide on May 1st. Short-term rentals, like Airbnb, are worsening the issue, with over 8,600 listings in March compared to 2,100 long-term. New EU regulations are pushing Ireland to act, but implementation faces delays, likely due to lobbying from large commercial operators.
Ireland's housing crisis is worsening, with rents increasing 4.4% in Q1 2024, matching last year's total rise. Rents are now 7.8% higher year-on-year, 40% above pre-Covid levels, and 81% higher than a decade ago. The average monthly rent for a two-bedroom apartment is €2,176. On May 1st, only 2,374 homes were available nationwide, a 4% decrease year-on-year and the third-lowest May figure since 2006, despite a population nearing 5.5 million.
The State's focus on rent controls, like the Housing Assistance Payment (HAP), is seen as addressing symptoms rather than the core issue of insufficient supply and high demand. A new rent control system allowing landlords to reset rents to market levels at tenancy end is dramatically increasing prices, pushing previously capped rents upwards.
Short-term rental platforms, particularly Airbnb, exacerbate the crisis. In March, over 8,600 homes were advertised as short-term lets nationwide, compared to 2,100 long-term rentals on Daft.ie. The EU's new short-term rental regulation has prompted Ireland's Short-Term Letting and Tourism Bill, requiring hosts to register with Revenue and banning new short-term let apartment blocks in towns over 20,000 population. This could return about 10,000 properties to long-term use, though a six-month delay has been announced.
Fáilte Ireland estimates 30,000–32,000 short-term let properties across Ireland, generating €338 million annually for 21,257 hosts. While 80% of hosts rent out one property, 20% manage multiple listings, and 45 landlords control 8% of all listings (2,606 properties). This latter group, concentrated in tourist hotspots, likely influences the delay in implementing stricter regulations. Barcelona, in contrast, plans to strip licenses from all 10,101 tourist apartments by November 2028 to combat its housing crisis, a plan upheld by Spain's Constitutional Court in March 2025. Ireland's crisis stems from underbuilding, high immigration, and the short-term rental market's impact, particularly in areas like inner-city Dublin.