Rents around the country have increased 6.7% in the past year – the fastest rate of inflation since 2019.

The latest Daft.ie report has found that there were just 1,460 homes available to rent in Ireland at the start of this month.

Rents are increasing much faster in rural areas than in urban areas.

Rents in Connacht-Ulster have increased by one-fifth in the past year - the strongest rate of inflation in 15 years - and rents in Munster are up 15.6%.

In Dublin, where there are now just 820 homes available to rent, prices have increased by 2.7%.

The average listed rent in Dublin is now €2,082 – up 107% from its lowest point in 2011.

National rental prices. Image: Daft

Report author Ronan Lyons told Newstalk there are marked differences between the urban and rural markets.

“If you go outside the five main cities rents are up by, on average, 12% year on year – and indeed in some places more like 20% year on year.

“In the other cities - in Dublin and the other cities - the increases are more like 3% to 6%, it depends a bit on where you are looking.”

The average rent around the country is now €1,516 – more than double its lowest point in 2011.

Rent price inflation. Image: DAFT

Mr Lyons said the prices reflect the unprecedented scarcity of rental homes on the market.

The 1,460 homes available to rent now is almost half the lowest level recorded between 2006 and the onset of the pandemic in 2019.

The 820 available in Dublin is the smallest amount in two decades.

The urban areas the stock of homes available to rent is between 70% and 80% lower than it was a year ago. Outside the cities, available is almost half what it was a year ago.

Image: DAFT

Mr Lyons said the situation is dire but there is a glimmer of light at the end of the tunnel.

“Right now, the prognosis is quite poor; however, over the next two, three or four years - particularly in the Dublin area - a lot of purpose-built rental supply is going to come on stream.

“That will make the situation better, not overnight, but certainly adding 30,000 or 40,000 new rental homes over the next number of years is definitely going to have an impact – but it is going to take time.”

The average rent has increased in every city in the country:

• Dublin: €2,082, up 2.7%
• Cork city: €1,544, up 6.9%
• Galway city: €1,475, up 8.3%
• Limerick city: €1,373, up 8.9%
• Waterford city: €1,164, up 10.0%
• Rest of the country: €1,153, up 11.9%