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Renting in Dublin and elsewhere in the state… May 10, 2016

Posted by WorldbyStorm in Uncategorized.

Speaking of housing matters……no surprise to many that:

The national monthly rent in March was €1,006. It is the first time since May 2008 that the average has been above €1,000.

In Dublin it’s been long that way and worse again by quite some factor. But the simple bald statement from the IT is:

Renting in Dublin now costs more than bubble era peak

Surely that tells us everything about the priorities, limitations and so on of the last administration and its orientation towards markets?


1. dmoc - May 10, 2016

Monstrous numbers; saw them yesterday. I don’t even want to translate them into US$. On top of that, the Irish cost of living – I don’t know how people manage it over there.

Heard Joan Burton self serving drivel on Marian’s Saturday show (hosted by Brendan O Connor); not an iota of her responsibility for over-seeing this mess.


WorldbyStorm - May 10, 2016

And this in a state which has been through what this state has been through. It’s abysmal.

Just on JB, there’s no evidence of self-awareness about anything in all this. Remarkable.


irishelectionliterature - May 10, 2016

It’s catastrophic on every level, especially combined with the higher deposit needed to buy a house. You have homelessness, thousands living in hotel rooms, rented accommodation packed with people, families living with relatives and so on. People spending way too much of their income on rent.
The other thing is rising wage demands to cover rising accommodation costs. Indeed was interviewing someone who would be moving to Ireland for work recently. The persons wage demands took account of the mad rental costs.


sonofstan - May 11, 2016

I stayed in a very nice apartment in a very nice part of Rome last week. Because i have the Irish property gene, I decided to check out how much it would cost me to rent such a place. 2 bedrooms, with living room and balcony, came in at about 1k per month.
( I realise Italian wages are about 70% 0f the Irish average, but I would guess Rome is higher than the national average?)


6to5against - May 11, 2016

If your Irish gene had been fully functional, wouldn’t you have seen how much it would have cost to buy it?

Liked by 1 person

Michael Carley - May 11, 2016

Milan rather than Rome tends to be the expensive city, though Rome is certainly more expensive than the South.

The problem renting in Italy is that there is a culture of staying at home with the parents for a long time, partly driven by tradition, but also by shockingly bad employment practices. Permanent full-time work is usually fairly stable in Italy, even when it’s not highly paid by international standards, but it can be hard to get, and young people in particular tend to be on quite nasty, perfectly legal, fixed term or precarious contracts (the so-called CoCoCo or CoCoPro) which give them almost no security and make it very difficult to find a place to live, especially anywhere near where the work is.


CL - May 11, 2016

“As of February 2016, average apartment rent within 10 miles of New York, NY is $3519.”


sonofstan - May 11, 2016

I did check out the buying options of course. But we were talking about renting…


2. Gewerkschaftler - May 11, 2016

Ah – the fruit of controlled (artificial) scarcity, a cartel of landlords, co-operative politicos and an ideological aversion to public provision!

That rent level is unbelievable in relation to other European averages.

Here, for instance are the historic rent rates (before heating etc.) for Germany during the last three years. That’s about 500 yoyos for a 76m squared flat.

Has anyone done work on the sinking of the real disposable household income since the bubble burst taking in these rent increases? This is what I always tell people about Ireland – that the GDP figures bear no relation to the real disposable income of people.

This exploitative level of rents surely must have many people put to the pin of their collars. Surely this is a massive area, close to the interests of everyone outside the top 5%, on which the left can build campaigns.


3. Seedot - May 11, 2016

Thats a really good point on the real disposable household income.

The CPI has had the cost of housing as stable for the last few years – thats because they combine the cost of servicing a mortgage (which has been falling) with the increase in rent. This gives a March 2016 CPI figure for housing costs of -1% over 12 months.

When you combine this with the drop in hourly wages for those in services and other low paid sectors we can see why the mythical ‘recovery’ pissed people off so much.

Maybe if you’re an IT worker with a mortgage there’s been a recovery. But the low national inflation rates are hiding very real cost of living increases and dropping wages for large numbers of people. The old high house prices low wages policy has consequences that no-one could possibly have foreseen.


4. Seedot - May 11, 2016

Just an addition to my sarcastic last sentence. Of course this was all foreseen – the ESRI has been highlighting the rate of household formation of 25,000+ without any matching supply of new residential units since at least 2013. So for at least 3 years this has been visible for anybody paying attention.

For example, from 2014: https://www.esri.ie/pubs/RN20140202.pdf

“Until the supply of dwellings responds to the rise in prices and rents, there will continue to be upward pressure on prices. “


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