Mid-West Rental market bounces back from severe contraction in December

The latest Mid-West Rental Monitor released by the Limerick Chamber shows rental supply issues have continued into 2024. The latest rental market report for January 2024 unveils notable shifts in the housing landscape across the Mid-West region of Ireland. Conducted by Limerick Chamber, the report provides insights into housing availability, rental prices, and trends shaping the rental market.

According to the report, January 2024 witnessed a slight increase in the number of available homes compared to December 2023, with a rise of 22 homes across the Mid-West region. Amidst this increase in supply, the average rental price experienced a slight decrease, settling at €1,720—a decrease of just €16 since the previous month. One of the standout findings is the disparity in rental prices compared to the previous year (January 2023). In January 2024, while there were four more homes available for rent compared to the previous year, the average rental price surged by 27%, amounting to an additional expenditure of approximately €4,000 for new renters.

In Limerick City and Suburbs, January 2024 saw a modest increase of two homes compared to the previous month. In conjunction with this uptick in supply, both the median and average rental prices experienced a decrease of 9% and 3%, respectively. Comparing information year-on-year revealed an increase in available homes, with 36 homes available in January 2024 compared to just 16 in January 2023. Unfortunately, this increase in supply was met with a 15% surge in average rental prices, translating to an additional spend of over €3,000 for new renters.

Expanding the scope to the entire county of Limerick, January 2024 witnessed an increase of 18 homes compared to the previous month. There was a somewhat noteworthy 8% decrease in average rental prices and a 5% decrease in median prices since the previous month. However, the comparison to January 2023 reveals a contrasting picture, with a 9% increase in average prices—representing almost an additional €2,000 spend for new renters.

Clare too experienced an increase in available rental homes in January 2024, with 24 homes available, an increase of 6 homes from the previous month. Although Clare witnessed a decrease in average rental prices, the change was marginal, amounting to €5. Interestingly, median prices experienced a slight increase, albeit by €25. Compared to January 2023, Clare saw a reduction of 6 homes available for rent in January 2024 while experiencing a 12% increase in average rent prices—equating to an additional annual spend of just under €2,000 for new renters.

In contrast, Tipperary observed a decline in the number of available homes since December, with only 19 homes available in January 2024, the joint lowest number observed in Tipperary over the lifetime of the Limerick Chamber Mid-West rental monitor. Remarkably, prices also increased from the previous month, with average prices up by €36 and median prices up by €80. Compared information year-on-year, supply in Tipperary decreased by 49% while average prices surged by 20%.

The January 2024 rental market report underscores the dynamic nature of the housing landscape in the Mid-West region of Ireland. As rental prices continue to fluctuate and supply levels evolve, Limerick Chamber remains committed to providing comprehensive insights to empower greater housing focused policy making across the Mid-West.

Commenting on the release, Seán Golden, Chief Economist and Director of Policy at Limerick Chamber said “ December represented a very bleak picture for renting across the entire Mid-West, not only did it have the lowest availability since we began this report but it was also combined with the highest average and median cost recorded. January has seen a slightly more positive picture emerge, with supply increasing in Limerick and Clare, as well as seeing a decrease in average prices. Tipperary, unfortunately, showed the opposite. While January represented an all round more positive picture, there is still serious cause for concern with the availability of rental homes being totally outstripped by renter demand. There needs to be a serious acceleration of affordable homes across the entire Mid-West or else this issue will continue for quite some time “