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According to the latest report from the Residential Tenancies Board (RTB), new tenancies in Ireland experienced a substantial 8.9% increase in rental prices during the first quarter of 2023. This surge in rent prices has led to 16 counties across the country now facing an average monthly rent of €1,000 or more. The data, focusing specifically on new tenancies rather than existing rental agreements, indicates that the average rent in Ireland for Q1 2023 stands at €1,544, representing a 2.5% increase for the initial three months of the year.

A New Report Reveals Significant Rent Increase in Ireland's Rental Market

With the rising cost of housing, the 16 counties most affected by this surge in rent prices are Carlow, Clare, Cork, Dublin, Galway, Kerry, Kildare, Kilkenny, Laois, Limerick, Louth, Meath, Waterford, Westmeath, Wexford, and Wicklow. Within Dublin itself, the average rental price now reaches a staggering €2,102 per month, while the Greater Dublin Area (excluding Dublin) stands at €1,530. Cork City follows closely with a monthly average rent of €1,490, which is €381 higher than the average for Cork County. On the other end of the spectrum, the lowest monthly rents were found in Leitrim, where the standardised average stood at €809 per month.

Decrease in New Tenancies Adds Pressure to the Rental Market

An additional concern highlighted in the report is the significant drop in the number of newly registered tenancies, plunging by 8.2% compared to the previous quarter. This decline further exacerbates the struggle for prospective renters to find available accommodation. The number of new tenancies decreased from 15,336 in the corresponding quarter of the previous year to just 14,085 in this year's first quarter.

Remarkably, Dublin and the Greater Dublin Area accounted for over half of all newly registered tenancy agreements during this period. Nationally, approximately 58% of all new tenancies related to apartments, indicating a growing trend towards this type of housing.

The Importance of Addressing the Housing Crisis in Ireland

The steady increase in rental prices, coupled with a decline in new tenancies, highlights the urgent need for action to address the housing crisis in Ireland. As the rental market tightens its grip, finding affordable accommodation becomes increasingly difficult for tenants. This situation not only impacts individuals and families looking for homes but also affects businesses and the overall economy.

The government and relevant authorities should take proactive measures to alleviate the pressure on the rental market. Policies aimed at encouraging property development, enhancing affordable housing initiatives, and increasing the supply of rental properties could potentially improve the situation. It is crucial to strike a balance between the rights and interests of landlords and the well-being of tenants.