Ireland’s rental market experienced a severe crisis in early 2026, as rents nationwide rose by 4.4% during 2025 amid a historic decline in supply, according to the latest quarterly rental report issued by property platform Daft.ie.
The report, prepared by Ronan Lyons, Professor of Economics at Trinity College Dublin, confirms the continuation of the upward trend in rents, which accelerated from 3.6% in 2024. Rents have increased in 13 of the past 14 years and are now 34% higher than pre-COVID-19 levels, and nearly 80% higher than they were a decade ago.
The crisis has been most severe in Dublin, where listings of available homes have declined by more than one-third year-on-year. The average rent for a two-bedroom apartment has risen to €2,438, while some reports indicate that prices for city-center properties have reached approximately €2,700.
In rural areas, annual increases were slightly lower, averaging around 6% in the regions of Leinster and Munster, and 5.1% in Connacht–Ulster. Lyons noted that uncertainty surrounding these regulations may have contributed to worsening shortages in rental supply, emphasizing that time will reveal the full impact of the changes on the market.
He also questioned whether housing availability would improve once the new laws come into effect, or whether the measures would encourage landlords to sell their properties rather than continue renting them out.
These figures reflect an ongoing imbalance between supply and demand in Ireland’s rental market. Despite inflation rates easing from pandemic-era highs, rental supply now stands at only about 40% of what it was between 2015 and 2019 in many areas, with even sharper declines outside Leinster. Analysts stress the importance of accelerating construction activity to ease the crisis and curb the continued increases expected throughout 2026.
