Why Ireland’s Rental Market is Struggling to Meet Rising Demand 

In recent years, there has been a significant shift in the Irish housing market. Only 66% of homes are owner-occupied, compared to 68% in 2016, and the total number of properties rented from private landlords increased by 7%. Now, with over half a million households living in rented accommodation, it’s becoming increasingly difficult for people to find properties to rent. 

There is currently an increasing demand for rental properties, yet the supply of homes available is drastically dwindling. The gap between the number of people trying to find somewhere to live and the number of rental homes available is leading to a critical property shortage that’s having a significant impact on families across the nation. Below we have explored how Ireland’s rental market is struggling to meet rising demand in more detail. 

Increase in Rental Demand

The booming demand in Ireland’s private rental sector is driven by several key factors. Population growth is one of the main reasons, with the country experiencing a rise in both its native population and migration. This growth, combined with new household formations, has had an impact on the need for rental properties and made the market more competitive. Not to mention, the appeal of Ireland as a tourist destination has led to an increase in holiday lets. While this is beneficial for the short-term tourism economy, it has removed potential long-term rental properties from the traditional housing market. 

Challenges Facing the Rental Market

Over the years, being a landlord has become less desirable. More small landlords are selling their properties and leaving the rental market behind. Many find owning a buy-to-let property has become increasingly complicated and inconvenient, not to mention, expensive. With stringent regulations, the financial burden of maintaining rental properties has removed one of the main incentives of being a long-term landlord. Small landlords are capitalising on the recent surge in house prices, seeking to maximise the return on their investment. Alternatively, as touched on above, they are converting their properties into more profitable veneers, such as short-term holiday rentals on platforms like Airbnb. 

However, the struggle to meet demand in the rental market isn’t caused by landlords alone. The private rental market is forced to address the shortcomings of social housing. With reduced availability, more households are turning to the private rental market. More younger people are living in rental properties too, caused by the difficulty saving for a deposit, the rising house prices and the high-interest rates on mortgages. So, there is more competition than ever before for people searching for suitable rental properties. 

Advice for Renters in 2024 

For those navigating the challenging rental market in 2024, some strategies can help to improve your chances of finding a suitable property;

• Start Early and Be Prepared – Begin your search for a new home well in advance of your move date. Have all required documentation ready, including references, proof of income and a security deposit, to help you quickly secure a rental. This proactive approach can not only help during the search process but also demonstrate to potential landlords your seriousness, making you a more attractive candidate.

• Expand Your Search – Consider a wider range of locations, including areas just outside your preferred place to live. Sometimes, the ideal rental for your needs is just a bit further away than expected. Not to mention, exploring different neighbourhoods can offer unexpected benefits, such as lower rent, more space or access to amenities, that you might not have considered initially.

• Be Flexible – Flexibility on move-in dates, lease terms or property features may open up more rental opportunities. Being willing to compromise on certain aspects can make a big difference, especially in competitive markets when several households are applying for a limited number of properties. It might also result in you finding a property that exceeds your expectations in areas you hadn’t prioritised.

• Understand Your Rights – Familiarise yourself with tenant rights and regulations in Ireland, it’s always useful to have this knowledge. Being aware of legal protections and obligations can help you find the right property and improve the landlord-tenant relationship. Of course, this information can empower you to negotiate better terms and also recognise when a rental situation isn’t in your best interest.

Get Support from Estate Agents in Galway

Ireland’s rental market can be a daunting place for households in 2024 and with demand far outweighing supply, finding somewhere to live has become increasingly difficult. This imbalance is fueled by a range of factors, which unfortunately are out of your control as a tenant. If you’re searching for a private rental property, a proactive and informed approach is undeniably beneficial and can help you navigate these challenging times. 

Getting some support from property experts can streamline the rental process. Here at Michelle Burke, we understand how difficult it can be to find the right property for your needs. With many years of experience, we will support you in your property search and have your best interests at heart. As reliable estate agents in Galway, we strive to exceed your expectations and we always live up to our promise; ‘nobody works harder for you’.