Analysing the latest Daft.ie rental report and what it means for Galway
The average rent nationwide rose by almost 4% in the third quarter equalling the largest three month increase seen in the second quarter of the year. Combined with other recent increases, it means that the annual rate of inflation in Ireland is now 11.7%, the highest recorded by the Daft.ie report since its series start in 2002.
Up to now, it has been Dublin that has pulled up the national average rate of inflation. But, now there is little to choose between Dublin and the rest of the country. Outside Dublin the rate of inflation is 10.9% with the cities of Cork, Galway and Limerick leading the way.
Supply has failed to respond to demand across the country and we are now seeing the effects. And the complete absence of any meaningful level of construction in Ireland over the past 5 years is a systemic failure in desperate need of policy solutions.
Galway city has seen significant increases in rental inflation with the average 2 bed apartment now renting for €811 an increase of 14% on the same time last year. 3 bed semis rent for on average €979 an increase of 11.5% and 4 beds are renting for on average €1,065 an increase of 12.5%
It is now cheaper to buy a property and pay the mortgage than to rent.(based on a 3.75% variable mortgage for a term of 30 years with an LTV of 85%).