Ireland’s housing sector has been under pressure for more than a decade. Despite new regulations, rent caps, and planning reforms, prices continue to rise, availability continues to fall, and thousands of renters face growing uncertainty each year.
This guide explains in very simple terms, the real reasons rents & house prices keep climbing, why current policy measures are not enough, and why large-scale State intervention is the only realistic long-term solution.
Key Takeaways
| Issue | What’s Happening | Why It Matters |
|---|---|---|
| Chronic Undersupply | Far fewer homes built than needed over 15+ years | Low supply pushes up prices everywhere |
| Decline of Small Landlords | Thousands selling or exiting rental market due to upcoming regulation | Reduces rental stock even further |
| Delayed Social Housing delivery | Years of low State investment | Pushes more households into private rentals |
| Strong Population Growth | Net migration + new household formation | More renters competing for fewer homes |
| Rising Construction & Finance Costs | Higher interest rates and build costs | New rental projects delayed or cancelled |
| Insufficient Planning Capacity | Long delays approving housing | Slows down future supply pipelines |
| Long delays in approving housing | RPZs temper increases but don’t reduce rents | Prices remain high because demand > supply |
Why Rents & House Prices Keeps Rising in Ireland
1. There Are Simply Not Enough Homes
Ireland has a chronic housing shortage amd needs at least 50,000+ homes per year, possibly closer to 60,000 based on population growth, rising net migration, shrinking household size, and pent-up demand.
Right now, we are building 29,000–33,000 per year (2022–2024 average) which is nowhere near what is required.
With far more people looking for homes than homes being built, prices behave like auction prices and continue to rise.
2. Small Landlords Are Leaving the Market
Small landlords make up a huge percentage of Ireland’s rental stock. In recent years, many small landlords are leaving the market because:
- Compliance costs keep rising (repairs, insurance, taxes)
- Current and upcoming regulations are tougher on smaller landlords (i.e, 6-year minimum leases)
- Some are transferring properties to family
- Selling with tenants in situ is often financially unattractive.
- Mortgage interest relief reductions in past years left many unprofitable.
This reduces the number of homes available to rent, and unfortunately, landlords reduce but the number of people needing homes doesn’t. Even if institutional landlords build new units, it rarely replaces the volume lost from individual exits.
3. Limited Social and Affordable Housing Puts Pressure on the Private Market
Ireland needs 20,000+ social and cost-rental units yearly to stabilise prices.
We are producing around 9,000–12,000 combined (varies by year), which is a fraction of what is required.
Also, most developers that can bear the rising costs of inflation:
- Typically build expensive luxury apartments, not average/affordable homes.
- They do not operate as much in rural Ireland or smaller towns.
- They cannot easily replace the thousands of private rental homes exiting the rental market annually.
This pushes more households, including low- and middle-income earners into private rentals, which increases competition for limited supply.
4. Construction Costs Make New Rental Homes Expensive
Due to supply chain issues since COVID, energy price surges due to the war in Ukraine and general rises in global inflation, developers are now dealing with:
- Increased material prices
- Higher labour costs
- Rising interest rates and
- Higher Insurance and regulatory requirements
When construction is expensive, rent must be higher to make new projects viable. If rent can’t cover costs, projects are delayed or cancelled, further reducing future supply.
5. Planning Delays Slow Down Housing Delivery
Even when homes can be built:
- Large projects get delayed for years.
- Judicial reviews stall development.
- Local authorities often block density.
- Infrastructure (water, sewage, roads) is lacking in many areas.
Delays increase cost. Increased cost increases rent.
A slow system produces expensive homes.
Expensive homes produce expensive rents.
6. Rent Pressure Zones Cannot Fix a Supply Problem
Rent caps limit annual rent increases for existing tenancies, but:
- They do not reduce rents
- They do not increase supply
- They may unintentionally discourage new investment
RPZs help protect sitting tenants, but they cannot change the underlying shortage.
7. Immigration and Demographic Trends Increase Demand Faster Than Supply
Ireland’s population is growing at one of the fastest rates in the EU.
Factors include:
- Strong economy on paper (However, the reality is far more complex.)
- Inward migration
- Higher birth rates than EU average
- Shrinking household size
Even if building increased slightly, demand would still outpace supply.
Why Massive State Intervention Is Needed (Apple Tax Windfall as an Opportunity).
Ireland’s rental market challenges cannot be solved through incremental changes. Supply must increase quickly, reliably, and at scale.
Now we do not expect this money to come out of thin air.
What if I told you that this money is not from the taxpayer, and carries no debt obligation to any lenders? Domestic or Foreign?
What if I told you that mobilising only 10billion from that fund could help put a massive dent in this housing crisis? And hopefully start a series of events that could eventually end the housing crisis for good in Ireland?
That’s right – I am talking about the 14billion paid by Apple Inc to the Irish government in back taxes, which was finally collected in full by the Irish Government in July of 2025.
With that money, the Government can:
- Build, own and control tens of thousands of social homes using modular & MMC techniques
- Empower local councils to buy, restore and own relevant vacant buildings
- Improve Uisce Eireann’s infrastructure by contributing to its Leakage Programme.
- Reduce reliance on the private rental market and stabilise prices
- Give Irish residents long-term stability
Instead, all of that money now remains locked in the National Development Plan (NDP); a well-intentioned but unclear plan that focuses on long-term, less urgent infrastructure projects.
1. Large-Scale Public Housing Construction
A sustained, multi-year national building programme could:
- Increase supply quickly
- Reduce pressure on private rentals
- Offer long-term affordability
- Stabilise the entire housing system
2. Long-Term Affordable Rental Schemes
Ireland has a rare opportunity to expand on its current cost-rental schemes that could provide more:
- Predictable rents
- Secure tenancies
- High-quality homes
- A stable alternative to the private market
3. Support Small Landlords to Stay in the Market
Policies that stabilise the sector might include:
- Fairer lease agreements for smaller landlords (the upcoming 6-year minimum lease is too harsh)
- Incentives for leasing to the State
Retaining existing rental homes prevents further supply drops.
4. Investing in Infrastructure & Planning Capacity
More homes can only be built if planning departments and utilities can support them. Investment using the Apple fund is needed in:
- Local authority staffing
- Water and wastewater upgrades
- Digital planning tools
- Faster appeals resolution
Final Thoughts
Rent and House prices in Ireland will continue to rise unless there is intentional large-scale, long-term State intervention focused on increasing supply. And right now, the state is sitting on 14 billion but lacks the political willpower mobilise it to increase the delivery of social homes.
Regulation alone cannot fix a shortage of homes. To stabilise prices, the housing system must be backed by consistent investment, faster planning processes, and a strong pipeline of public, affordable, and cost-rental housing.
Without this, the housing market will remain under pressure, and households will continue to feel the impact for years to come.
