Research Report: An Analysis of the Irish Residential Rental Market in Q2 2025
Report Date: February 09, 2026
Prepared For: Stakeholders in the Irish Property Market
Subject: The Daft.ie Rental Price Report for Q2 2025: Key Findings, Trends, and Market Dynamics
This research report provides a comprehensive analysis of the Irish residential rental market, with a specific focus on the trends, key findings, and market dynamics presented in the Daft.ie Rental Price Report for the second quarter (Q2) of 2025. As of the date of this analysis, February 9, 2026, the Q2 2025 period represents a critical juncture in the post-pandemic evolution of Ireland's housing sector, characterized by persistent affordability challenges, shifting supply dynamics, and significant policy scrutiny.
The Daft.ie Rental Price Report series, authored by Ronan Lyons of Trinity College Dublin, stands as one of the most prominent and timely indicators of the Irish rental market, leveraging data from one of the nation's largest property portals. Its findings are instrumental for tenants, landlords, investors, policymakers, and economic analysts seeking to understand the granular and macro-level movements in rental prices and availability.
It is imperative to note a key consideration regarding the available source material for this analysis. The search results provided for this research contain extensive and detailed information from the Daft.ie Rental Price Report for Q1 2025, which offers a comprehensive baseline of the market conditions leading into the second quarter. Direct data points and specific findings from the Q2 2025 report are present but more fragmented, appearing in secondary sources such as economic updates and government legislative documents that cite the report's findings 12|PDF13|PDF.
Therefore, this report adopts a rigorous two-pronged analytical approach. Firstly, it will synthesize all available direct findings from the Q2 2025 report to establish the headline trends for that period. Secondly, it will utilize the rich, detailed data from the Q1 2025 report to provide essential context, establish preceding trends, and facilitate a comparative analysis that illuminates the trajectory of the market's evolution from the first to the second quarter of 2025. This methodology allows for the construction of a robust and deeply nuanced understanding of the Irish rental landscape in mid-2025, even with fragmented primary source data for the specific quarter in question.
The report will be structured as follows:
This structured approach ensures that the analysis is comprehensive, data-driven, and provides maximum insight into the critical dynamics shaping housing for hundreds of thousands of people across Ireland.
To fully appreciate the findings and analysis presented in this report, it is crucial to understand the sophisticated methodology that underpins the Daft.ie Rental Price Report series. This methodology ensures the reports are not merely a raw collection of asking prices but a statistically rigorous measure of market trends, controlling for variations in the type, size, and quality of properties available over time. The credibility of the report's findings rests on its data source, statistical techniques, and clear definitional scope.
The fundamental data source for the Daft.ie Rental Price Report is the vast repository of property listings advertised on the Daft.ie website itself 1|PDF1|PDF8|PDF. Daft.ie, as one of Ireland's preeminent property portals, captures a significant portion of the properties available for rent on the open market at any given time. In 2018 alone, for instance, over 140,000 properties for sale or rent were advertised on the site 1|PDF. The average annual sample size for rental properties specifically is approximately 60,000 listings 1|PDF.
This data source has a specific and important characteristic: it is based on asking rents 16|PDF. This means the report measures the price landlords and agents are seeking for vacant properties being offered to new tenants. This makes the Daft.ie report an excellent barometer of current market conditions and the price point faced by those actively seeking accommodation 1|PDF. This is distinct from other sources, such as the Residential Tenancies Board (RTB) Rent Index, which is based on all registered tenancies, including those of sitting tenants whose rents may not reflect the current open-market rate 15|PDF16|PDF. The Daft.ie report is, therefore, a leading indicator of rental price inflation.
Simply averaging the asking rents of all properties listed in a given quarter would produce a misleading index. The mix of properties available for rent changes constantly; one quarter might see a surplus of one-bedroom apartments in Dublin, while the next might have more four-bedroom houses in Cork. To overcome this, the Daft.ie report employs a robust statistical technique known as hedonic price regression 1|PDF1|PDF8|PDF.
Hedonic regression is a model that deconstructs the price of a good—in this case, rental housing—into the constituent values of its various characteristics. The model accounts for all available and measurable attributes of a property to isolate the "pure" change in price over time, holding the quality and type of housing constant 1|PDF1|PDF8|PDF. These attributes typically include:
By using this method, the resulting rent indices reflect the change in the cost of renting a standardized "basket" of properties, rather than just the change in the average price of whatever happens to be on the market. The indices are based on these standard methods, holding the mix of characteristics constant, with a designated base period (e.g., the annual average of 2016) used as the benchmark 1|PDF. Furthermore, only coefficients with a very high degree of statistical significance (p < 0.001) are utilized in the model, ensuring the relationships identified are statistically sound 8|PDF. To improve the quality of the data, the methodology also employs a Cooks Distance filter to identify and remove statistical outliers that could otherwise skew the results 1|PDF.
Recognizing that the open-market asking rents do not capture the experience of tenants remaining in their properties, Daft.ie has also developed a supplementary measure known as the "Stayers Index" 1|PDF. This index is constructed using a bespoke survey of sitting tenants, asking them about their rental payment history 1|PDF. This provides a valuable point of comparison, typically showing that rents for sitting tenants rise more slowly than the open-market rates captured in the main index. While the headline figures in the quarterly reports focus on market rents, this supplementary analysis adds depth and nuance to the understanding of the rental sector as a whole.
The analysis is conducted at a regional level, and these regional markets are then aggregated to produce a national average monthly rent figure. To do this accurately, the report's methodology has historically used census weights to ensure that the national average reflects the actual distribution of the country's housing stock 17|PDF. The final report presents the data in a clear and accessible format, typically including tables with average rents, quarter-on-quarter percentage changes, and year-on-year percentage changes for the state, the four main cities outside Dublin, the provinces, and individual counties 1|PDF1|PDF.
The report is authored by Ronan Lyons, an economist at Trinity College Dublin, which lends it academic rigor 1|PDF. The authors are transparent about their methodology, noting that a working paper on the techniques employed is available on the Daft.ie website 8|PDF. They also include necessary disclaimers, reserving the right to vary the methodology or discontinue the series for regulatory or other reasons, and cautioning against reliance on the information for commercial purposes without independent verification 1|PDF. This transparency and academic oversight are cornerstones of the report's value as a reliable market indicator.
In summary, the Daft.ie Rental Price Report is not a simple summary of listings but a sophisticated economic analysis. Its strength lies in the combination of a comprehensive, high-frequency data source (Daft.ie listings), a powerful statistical methodology (hedonic regression) to ensure like-for-like comparison over time, and a clear focus on measuring the current state of the open market for rental accommodation.
While a full, detailed copy of the Daft.ie Rental Price Report for Q2 2025 was not available in the provided search results, key headline figures from the report have been cited in other official and economic publications. These figures, when analyzed in the context of the preceding quarter, point to a rental market that remained under significant inflationary pressure in mid-2025, but with potential early signals of a slight moderation in the rate of price growth.
The primary findings for Q2 2025 are as follows:
Sustained High Year-on-Year Inflation: The most significant finding, cited in the Finance Bill 2025, reveals that national market rents rose by 6.9% in the year to Q2 2025 13|PDF. This figure confirms that the intense inflationary environment that characterized the market in late 2024 and early 2025 continued into the middle of the year. A near 7% annual increase far outpaces general inflation and wage growth, cementing the ongoing rental affordability crisis as a major economic and social issue.
Indication of Moderating Inflationary Pressure: While the 6.9% annual increase is substantial, it represents a deceleration from the year-on-year growth rate of 7.3% recorded in Q1 2025 1|PDF. This 0.4 percentage point slowdown, though modest, is a noteworthy development. It suggests that while prices were still climbing steeply, the upward momentum may have been starting to ease slightly as the market moved into the summer months. This could be attributed to a number of factors, including affordability ceilings being reached by tenants or a marginal improvement in supply.
Strong Rent Growth Persists Outside Major Urban Hubs: Regional data remains robust, indicating that pressure is not confined to the capital. An economic report for Kilkenny specifically references the Q2 2025 Daft.ie data, showing the average rent in Kilkenny reached €1,691, an increase of 9.5% year-on-year 12|PDF. This demonstrates that rent inflation in many regional centres continued to outpace the national average, highlighting the widespread nature of the supply-demand imbalance.
Contradictory Signals on Supply and Vacancy: The narrative on rental supply, which was a core theme of the Q1 report, appears to have become more complex in Q2. The Q1 2025 report detailed a significant contraction in availability, with 14% fewer homes available to rent nationwide on May 1st, 2025, compared to the previous year 1|PDF. However, external market analysis for the Q2 2025 period (not from Daft.ie but relevant for context) suggested that supply was "strengthening" and that the national vacancy rate climbed to 4.0% . While this data is from a different source, it introduces the possibility that the trend of ever-tightening supply may have seen a slight reversal during the second quarter, a dynamic that would be consistent with the observed moderation in rental inflation.
In essence, the Q2 2025 data paints a picture of a market in transition. The severe affordability pressures on tenants remained firmly in place with a near 7% annual rent hike. However, the slight deceleration in the inflation rate from the Q1 peak, coupled with external indications of a potential improvement in supply, suggests the market may have been moving away from the "red hot" conditions of early 2025 towards a state of merely "very high" inflation.
To fully comprehend the significance of the Q2 2025 findings, it is essential to conduct a deep dive into the state of the market immediately prior. The Daft.ie Rental Price Report for Q1 2025 provides an exceptionally detailed snapshot of the pressures, trends, and regional disparities that defined the Irish rental landscape at the beginning of the year. This period was characterized by accelerating rent inflation, critically low levels of supply, and a widening affordability crisis across the entire country.
The start of 2025 saw a dramatic intensification of rental price inflation. The headline national figures from the Q1 2025 report were stark:
This combination of a high underlying annual inflation rate and a sharp quarterly acceleration painted a bleak picture for anyone seeking accommodation in the spring of 2025. The market was not only expensive but was becoming so at a faster rate.
The primary driver of the rampant rent inflation observed in Q1 2025 was a critical and worsening shortage of available rental properties. The Daft.ie report measures supply by counting the number of active rental listings on its site on a specific date, providing a real-time indicator of availability.
On May 1st, 2025, there were just under 2,000 properties available to rent nationwide 1|PDF. This figure is startlingly low for a country with a population of over five million. The year-on-year trend was even more concerning:
This chronic lack of supply created a fiercely competitive environment for tenants, giving landlords significant pricing power and leaving prospective renters with very few options. The shortage was not a new phenomenon, but its intensification in early 2025 was a key factor behind the record-setting quarterly rent increases.
While Dublin has historically been the epicentre of the rental crisis, the data from Q1 2025 clearly shows that severe pressures had become deeply entrenched across every region of the country.
After a period where rent inflation in Dublin had lagged behind the rest of the country, the capital saw a significant resurgence in price growth in early 2025.
The average monthly rent in Dublin reached approximately €2,395 in Q1 2025, a figure that placed enormous financial strain on households and individuals 1|PDF1|PDF.
The rental markets in Ireland's other major cities—Cork, Galway, Limerick, and Waterford—were experiencing even more acute inflation than Dublin.
These figures, all significantly higher than Dublin's 5.8% inflation rate, illustrate the "spillover" effect of the housing crisis. As Dublin became increasingly unaffordable, demand shifted to other urban centres, which lacked the rental stock to absorb it, leading to rapid price escalation.
The rental crisis was not merely an urban issue. The provincial-level data from Q1 2025 highlighted the pervasive nature of the problem.
Beyond the cost of entire properties, the report also sheds light on the market for individual rooms, a crucial segment for students, young professionals, and single people. The trends here mirrored the broader market, with affordability rapidly eroding.
This demonstrates that the affordability crisis was impacting individuals at every level of the market, making it increasingly difficult for people to find even basic, shared accommodation within their budgets. The data from Q1 2025 unequivocally shows a market at a boiling point, defined by record-setting rent increases driven by a severe and worsening supply deficit that affected every city, county, and province in the state. This was the critical context in which the trends of Q2 2025 began to unfold.
Building upon the intense market conditions of Q1 2025, the second quarter of the year appears to have been a period of subtle but significant transition. While the overarching theme remained one of high rental costs and severe affordability challenges, the available data points for Q2 suggest a shift in momentum. The key dynamics of this period revolve around the moderation of inflation, a potential inflection point in supply, and the persistent shadow of government policy intervention.
The most crucial dynamic observed in Q2 2025 was the apparent slowdown in the rate of annual rent growth. As established, the headline national year-on-year inflation figure for Q2 2025 was 6.9% 13|PDF. When placed in direct comparison with the preceding quarters, a clear trend emerges:
This deceleration, while seemingly minor, is statistically significant. It suggests that the explosive, accelerating price growth seen at the start of the year was not sustained. Several factors could be contributing to this trend:
It is crucial to frame this correctly: a 6.9% annual increase is still exceptionally high and represents a continuation of the affordability crisis. It is not a sign of a healthy market. However, the change in the rate of increase is a critical leading indicator. It suggests a market that is moving from a state of acceleration to one of high but potentially stabilizing inflation. The regional data from Kilkenny, with its 9.5% year-on-year increase in Q2 12|PDF, serves as a reminder that this moderation was not uniform and that acute pressure points remained throughout the country.
The narrative of a relentlessly shrinking rental supply, which was the defining story of Q1 2025, may have begun to turn in the second quarter. The Q1 report painted a bleak picture of a 14% year-on-year drop in available homes 1|PDF. In contrast, reports covering the Q2 period pointed towards a different dynamic.
One non-Daft.ie market analysis for Q2 2025 noted that rental supply was "strengthening" and that the national rental vacancy rate had climbed 40 basis points to 4.0% . While this data is not from the Daft.ie report itself, its timing and conclusion are highly relevant. An increase in the vacancy rate, however small, is the direct mechanism through which price pressures can ease. It signals that either more properties are coming onto the market or that properties are staying on the market for longer before being let.
Several factors could explain this potential shift:
If the Daft.ie Q2 2025 report did indeed confirm a stabilization or slight increase in the number of homes available for rent on its platform, it would provide a strong causal link to the observed moderation in rent inflation. The relationship is simple: when tenants have more choice, however marginal, landlords have less scope for aggressive price increases. This potential turning point in supply, moving from a period of sharp contraction to one of stabilization or slight growth, is arguably the most important underlying dynamic of mid-2025.
The rental market does not operate in a vacuum. Its dynamics in Q2 2025 were heavily influenced by the broader policy and economic environment. The fact that the Q2 2025 Daft.ie report's 6.9% inflation figure was cited within the Finance Bill 2025 13|PDFis telling. It shows that the rental crisis was a top-tier political and fiscal issue.
The "shortage of rental properties" was explicitly named as the cause of these rent increases in the legislative context 13|PDF. This indicates that government policy was being formulated against a backdrop of acute market failure. Measures aimed at boosting supply, such as incentives for construction and policies affecting small landlords, were likely under intense discussion.
Simultaneously, the broader economy was dealing with its own inflationary pressures. While the headline general inflation rate may have been cooling from its post-pandemic peaks, the specific and persistent inflation in the rental sector created a significant cost-of-living challenge. For the thousands of households in the private rented sector, the 6.9% increase in their single largest monthly expense had a profound impact on their financial well-being, far outweighing changes in the price of fuel or groceries.
The market in Q2 2025 was therefore a complex interplay of microeconomic factors (supply and demand for properties) and macroeconomic pressures (affordability limits and government policy). The data suggests a market straining under its own weight, where the extreme price inflation of early 2025 was becoming unsustainable, leading to a slight but crucial moderation as the year progressed.
This comprehensive analysis of the Irish residential rental market in the second quarter of 2025 reveals a sector at a critical inflection point. Drawing on the specific findings for Q2 2025 and contextualized by the deep data from the preceding quarter, a clear, albeit complex, picture emerges. The Irish rental market in mid-2025 remained in a state of crisis, but the trajectory of that crisis appeared to be shifting.
The headline finding for Q2 2025 is that national average market rents were 6.9% higher than in the same period of 2024 13|PDF. This figure confirms that the profound affordability challenges faced by tenants across the country persisted, with rental costs continuing to rise at a rate that far outstripped wage growth and general inflation. The rental crisis was not abating; it was an ongoing and acute social and economic issue, with regional hotspots like Kilkenny experiencing even more severe annual inflation of 9.5% 12|PDF.
However, the more nuanced and perhaps more significant finding lies in the change of momentum. The 6.9% annual inflation rate, while severe, represented a deceleration from the 7.3% peak recorded in Q1 2025 1|PDF. This slowdown, coupled with external indicators of strengthening supply and a rising vacancy rate suggests that the market dynamics were beginning to change. The extreme supply shock that characterized early 2025—which saw availability plummet by 14% year-on-year 1|PDF—may have started to ease, providing a crucial, albeit minor, release valve on price pressures.
In summary, the Irish rental market in Q2 2025 can be characterized as follows:
For the tenant, the situation in mid-2025 remained incredibly challenging. For the policymaker, the data provided a dual message: the crisis was far from over, but the underlying supply-side dynamics, which are the ultimate solution, may have been starting to move, however slowly, in the right direction. The evolution of the rental market into the second half of 2025 would depend critically on whether this nascent moderation in inflation and potential improvement in supply could be sustained and built upon.