Rents Increase 4.4% in a Single Quarter, Further Widening the Gap between Renting & Owning
New research from Daft.ie has revealed that rents in Ireland have experienced significant growth over the 4-month period from December 2025 to March 2026.
Nationally the average rent for a 2-bedroom apartment has now reached €2,176 per month, reflecting a national rent inflation rate of 4.4% in the quarter alone and 7.8% annually. Rent inflation nationally was largely driven by rent increases across the five cities with Galway experiencing an increase of 18% and Cork experiencing an increase of 13%. Dublin, Limerick and Waterford didn’t fall too far behind experiencing rent inflation rates of 6.9%, 10% and 8% respectively (Daft.ie).
| Location | Average Rent (2-Bed) | % Increase QoQ | % Diff. to National Avg |
| Dublin (City Centre) | €2,828 | 6.9% | 29.96% |
| Limerick | €1,900 | 10% | -12.68% |
| Galway | €2,309 | 18% | 6.11% |
| Waterford | €1,490 | 8% | -31.53% |
| Cork | €2,103 | 13% | -3.35% |
| National Average | €2,176 | 4.4% | – |
Average Rents in Ireland December 2025 to March 2026
What is driving such drastic increases in rents across Ireland?
The surge in rents across Ireland is largely being driven by the government’s new rental rules which came into effect earlier this year. The new rules put in place under the Residential Tenancies Act from 1 March 2026 aimed to provide renters with greater levels of security through minimum 6-year tenancies. Simultaneously, the new rules allowed landlords to reset rents to market levels between tenancies, which it seems many took the opportunity to do, in an aim to attract investors back to the market hoping to increase the supply of rental accommodation.
The government’s efforts to attract investors back to the market and increase the supply of rental accommodation across Ireland was welcomed, however, the fallout of the new rules is now having a larger impact on the affordability levels of many would-be purchasers as a result of the rent to wage ratio decreasing.
On the supply side of things, the number of available properties to rent nationally, as of 28 May 2026, stands at 2,418. As pointed out in Daft’s report, this is down approximately 4% on the same time last year. Interestingly, in the four cities outside Dublin, supply has actually increased almost twofold year-on-year in contrast to the decline seen in Dublin of c.23% over the same period.
Couple the supply shortage being witnessed across the country with an elevated level of demand following the issuance of c. 7,000 eviction notices over the first quarter of 2026, an increase of 51% over the same period last year, and the situation begins to look even more worrisome (Irish Independent). This increase in demand and general constraint in housing supply is likely to cause further upward pressure on rents until supply begins to increase and the cost of delivery eases.
How does this affect would-be or should-be first-time buyers?
The recent surge in rental prices across the country is causing widespread affordability issues for many would-be or should-be purchasers, more specifically first-time buyers, who are now paying inflated rent prices limiting the level of discretionary income they have to put towards saving for a mortgage deposit.
At Homely, we are seeing this first-hand constantly. Many of our customers are ready to be homeowners but are struggling to save for a deposit amidst the plethora of price increases over the last number of months and year, not just in housing terms.
The bridge between renting and owning is beginning to dissipate even further for many prospective first-time buyers, with the average age of first-time buyers now being in the region of 38-39, according to Michael Stanley, CEO of Cairn Homes, one of Ireland’s largest housebuilders (The Journal.ie). The average age of first-time buyers in Ireland has consistently increased over the past two decades where just a decade ago, the average age was 34. Moreover, the average age of a first-time buyer in 2006 was 29 (Royal London).
Adding to this, a recent article in the Irish Independent stated that a solo first-time buyer would be 66 before they could purchase a home in Dun Laoghaire, albeit one of Ireland’s more expensive locations (Irish Independent).
There is no doubt that the dream of becoming a homeowner is getting further and further out of reach for many renters in Ireland as the cost of renting continues to rise along with the increases in everyday costs too. The market both needs and deserves new, innovative, and alternative solutions to bridge this gap and give hope to those currently trapped in a cycle of renting.
That’s where we come in. At Homely, we act as an alternative path to homeownership for many who are currently excluded from the traditional purchasing process for a number of reasons, not just a lack of savings.
We provide our customers with a home they can call and make their own from day one whilst they build their deposit and work towards becoming homeowners over a 3-5 year period. To reward the hard work and dedication of our customers, we provide them with two powerful discounts which are deducted from the purchase price of their new home.
The current housing crisis in Ireland needs alternative solutions to help more people get on the property ladder and become homeowners sooner! Homely acts as a real path to homeownership whilst also increasing supply, creating new tenancies, unlocking new buyer profiles for developers and providing them with a clear exit strategy.
Interested in finding out more about how Homely is helping people become homeowners? Check out our website and apply today to see how we can help you!
References and Further Reading:
https://ww1.daft.ie/report/2026-Q1-rentalprice-daftreport.pdf?d_rd=1
https://www.thejournal.ie/ireland-average-age-first-time-buyer-6974142-Mar2026
https://www.royallondon.ie/siteassets/site-docs/press/first-time-buyers-moving-out-age.pdf