Increase in housing prices across Ireland putting renters under pressure

By Utku Muratoglu

In the last quarter of 2019, the rents in Galway City increased by 5.6 per cent, which means the average rental price is €1,309 per month.

The trend in Galway City is reflected nationwide, according to the Central Statistics Office.

The Central Statistics Office (CSO) has assembled indicators that have been repeatedly requested prior to Ireland’s economic crises, both during the recovery and in the years following the country’s recovery.

CSO statistics on House Prices

After a brutal economic crash and an equally savage austerity programme, the Irish economy has recorded positive growth over the past five years. It grew 8.6 per cent in 2014; 25.2 per cent in 2015; 3.7 per cent in 2016; 8.1 per cent in 2017, and 8.2 per cent in 2018.

The economic crisis in Ireland started in 2008 following rapid growth during the Celtic Tiger years. 

Affected by the global financial crash in 2007-2008, the country fell into recession which lead to an increase in unemployment and emigration and did not ease for several years. 

Economist Ronan Lyons has warned that a possible rent freeze may cause problems for the housing shortage in Ireland.

“To solve the rental crisis, the new government needs to tackle two things: high construction costs and dysfunctional social housing policies”, he said.

He added: “Neither requires a rent freeze. Both will require an investment by the taxpayer”.

“If housing is indeed the top issue for voters, then the new government has the mandate to make those investments”, he said. 

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