Ireland's Housing Market: Record Builds Amid Surging Rents and Evictions

Ireland's housing market presents contrasting narratives: a positive one of increased construction and investor confidence, and a negative one of escalating prices and affordability issues.

The industry and Government project approximately 40,000 new homes will be built this year, a post-crash record, though still below the estimated 50,000 needed. Industry leaders credit government policies for attracting investors back to the private rental sector after a period of low investment due to high interest rates and strict rent controls.

Conversely, recent reports highlight a surge in evictions and market rents. Data from the Residential Tenancies Board shows notices of termination doubled to over 7,000 in Q1. Daft's rental report indicates market rents rose by 4.4 per cent in the same period, with the average national rent for a two-bedroom apartment now almost €2,200 per month, 40 per cent above pre-Covid levels. This increase is linked to landlords using new rules to end tenancies and reset rents.