Rents in Louth now 12.1% higher on average than this time last year

The average rent in Louth has risen by 12.1% to €1,624 in the past year, with rents for many properties rising by almost 10% in some cases, according to the Daft.ie Irish Rental Report Q2 2023, released today. 

The number of homes available to rent across the country remains low, with 24 properties available to rent in Louth on the Daft.ie website as of today, 10th August. 

Average rents in Louth are now 155% higher than they were at during the trough in the last recession.

When it comes to the average rents in Louth, the rent for a one bed apartment has risen by 9.8% to €1077, with the average rent for a two bed house also rising by 9.8% to €1,303. 

For a three bed house, the increase was also 9.8% rising to €1,501. A four bed house has risen by 9.0% to €1,723.

Meanwhile,  the average rent for a five bed house in Louth has dropped by 3.5% to €1,803 per month.

The difference between rents and mortgage repayments for properties of the same size in Louth was as follows: 

The average mortgage repayment for a one bed apartment at €528 was less than half the cost of the rent for an apartment of the same size (€1077). 

For a two bed house in Louth monthly mortgage repayments are €684 compared to €1,303 to rent and for a three bed house in the mortgage is €€946 compared to €1,501 to rent - a difference of €555 a month. 

For a four bed house, the mortgage is €1,831 compared to €1,723 to rent and for a five bed house the mortgage is €1,796 compared to €1,803 to rent.

The figures were based on current mortgage repayments using the following parameters: 3.5% interest rate, for a term of 25 years, with a 90% LTV.

Nationwide, market rents in the second quarter of 2023 rose by an average of 2.4% compared to the first three months of the year.

Compared to a year ago, rents in the open-market are now 10.7% higher, with the average market rent nationwide in the second quarter just under €1,800 per month. This compares to €1,387 in the first quarter of 2020 and a low of just €765 per month seen in late 2011.

The report also notes that the extraordinary shortage of rental accommodation continues, although in recent months the number of homes available to rent has increased slightly. 

On August 1st, there were fewer than 1,200 homes available to rent nationwide. 

While this marked an increase of over 460 on the same date last year, availability remains extremely tight compared to other years. 

Commenting on the report, its author Ronan Lyons, Associate Professor in Economics at Trinity College Dublin and author of the Daft.ie Report, said:

“The figures in this latest rental market report indicate something of a split in market conditions. In Dublin, the construction of new rental housing – together perhaps with the effect of layoffs in some larger employers – has led to an easing of pressure in the open market. 

“Conditions remain far from benign for prospective tenants but the mismatch between strong demand and weak supply is not as stark as in recent quarters. Outside the capital, however, the lack of new rental homes means that the imbalance between supply and demand is still there.”