Average rents in the capital have outpaced not only house prices but also those in cities like Cork and Limerick, deepening the divide between renting and buying across Ireland.
The stark gap between average rental costs in Dublin and those in the rest of Ireland is now at its widest in over a decade, with new data showing renters in the capital are paying nearly twice what regional tenants do. The latest figures from the Residential Tenancies Board (RTB) revealed average monthly rents in Dublin hit €2,240 in Q1 2026, compared to €1,175 in Cork city and just €990 in Limerick.
This matters because the affordability gulf is forcing many would-be homeowners and tenants to re-evaluate their living situations. Even as wage growth in Dublin has ticked upward—CSO’s May Labour Market Report notes a 3.4% year-on-year increase—the pace hasn’t matched runaway rent inflation. The East Wall and Grand Canal Dock neighbourhoods are now regularly seeing one-bedroom apartments listed above €2,500 a month, while in Waterford or Sligo, a similar unit fetches less than €1,000. The cost disparity is not just a talking point for policymakers but an acute reality for thousands living in the city centre and its adjacent zones.
On Moss Street and throughout the South Inner City, Dublin City Council has reported a spike in housing support applications. The city’s Housing Assistance Payment (HAP) scheme, intended to bridge rent affordability gaps, distributed €86 million in 2025—notably, over 40% of its recipients are now in Dublin 1, 2, and 8. Meanwhile, local letting agencies such as Sherry FitzGerald and Daft.ie confirm ongoing record demand and dwindling supply well into July 2026. In contrast, on O’Connell Avenue in Limerick or in mid-market Cork suburbs like Ballincollig, agents say two-bed flats are available for under €1,200, often with concessions or free months thrown in.
The financial case for buying versus renting remains lopsided by postcode. Mortgage data from the Banking & Payments Federation Ireland (BPFI) shows the average first-time buyer in Dublin borrowing €372,000 in April 2026, with a corresponding mortgage payment of approximately €1,890 a month, assuming a 15% deposit and a 3.7% variable rate. This payment is considerably lower than the city’s average rent, provided the buyer can secure both a mortgage and the hefty deposit. In contrast, a comparable property in Galway or Kilkenny can still be mortgaged for less than €1,150 per month. For renters, the gap is more pronounced: Daft.ie’s June 2026 report found Dublin rents have risen 8% year-on-year, while increases outside the capital averaged under 3%.
Looking ahead, supply constraints are expected to persist. Dublin City Council’s latest private sector construction completion figures show fewer than 900 new rental homes delivered in the first half of 2026, well below its 3,000-unit annual target. Renters searching for alternatives may find relief in commuter towns like Ashbourne or Greystones, though train and bus fare hikes are reducing the cost-effectiveness of such moves. And as the capital’s rental market tightens further, affordability pressure will likely keep pushing Dubliners to reconsider buying, despite high entry barriers. For those hanging on in Portobello or Cabra, staying put often means paying a premium with little sign of relief on the horizon.
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