Irish rent prices hit record high as Galway faces formal investigation

Irish rent prices have reached record highs, sparking growing concern across the country.

Galway is now under formal investigation by the Residential Tenancies Board (RTB) due to “unusual” and persistent price hikes.

The national average rent has surpassed €2,000 for the first time, while regional cities including Limerick and Cork continue to experience double-digit annual increases.

Rent in Ireland now averages over €2,000 per month

According to Daft.ie, the average monthly rent in Ireland is now €2,053, a staggering 48 per cent higher than in 2020, and nearly triple the €765 average recorded in 2011, as reported by The Irish Sun.

Some of the steepest rent hikes have hit urban areas:

• Dublin: €2,540 average (up 5.8 per cent year-on-year)
• Cork City: €2,213 (up 13.6 per cent)
• Limerick City saw the largest jump at 20.4 per cent
• Rest of Ireland: €1,645 (up 7.2 per cent)

Galway under investigation for rent hikes and rule breaches

Galway is now in the spotlight after the RTB flagged “unusual” rent trends in the county. Despite being a Rent Pressure Zone (RPZ) – which limits rent increases to 2 per cent annually – the region has seen eight consecutive quarters of rapid rent growth, the RTB confirmed, as reported by BreakingNews.ie.

The board will travel to Galway this June to engage with renters, landlords, and local stakeholders. A public forum will also be held to review compliance with rental laws.

According to the RTB, the average rent for new tenancies in Galway City was €1,730 in Q4 2024. Daft.ie’s broader data, which includes all tenancies, reports a current average of €2,304 in the city.

What’s driving the rise in rental prices in Ireland?

One of the biggest drivers of rent inflation is a severe housing shortage. As of May 1, just 2,300 homes were available to rent nationwide, according to Daft.ie – down 14 per cent year-on-year, and among the lowest in 20 years, cited by The Irish Sun.

Economics professor Ronan Lyons, who authored the report, said:

“Unfortunately, changes made to rent controls in 2021 dramatically reduced the ability of Ireland’s rental sector to attract the capital needed for new supply, the ultimate remedy for the shortage.”

Irish landlords are being penalised

To clamp down on non-compliance, the RTB announced eight sanctions against landlords in Galway, seven of which were for breaching RPZ rules. Fines ranged from €200 to €4,400.

Nationally, 28 additional penalties were issued last week, including a €22,000 fine to Sweet Home Accommodation Ltd for failing to register tenancies in several Dublin properties.

RTB Director Rosemary Steen said:

“The new Rent Index data has flagged unusual patterns of rental inflation in Galway… Our Compliance and Enforcement team continues to pursue high-risk offenders” (BreakingNews.ie).

In total, €102,490 in sanctions were issued.

While the RTB said rent inflation is beginning to moderate, prices remain unaffordable for many.

With supply at record lows and demand soaring, are deeper reforms needed?

View all news from Ireland.