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RISING RENTS COULD reverse a trend sparked by the property crash where young people were able to move out of the family home earlier than ever before.
A research note published today by the ESRI shows that young adults were setting up independent households earlier than ever before in 2011, but they may not be able to afford it now or will have to share accommodation.
Compared to before the financial crash, 2.3% more 25- to 29-year-olds and 2.1% more aged between 30 and 34.
However, David Byrne, one of the authors of the research note, warned that these increases are unlikely to continue, as rising rents affect young people’s ability to move out.
Byrne also noted that the research suggests that 2.6% of those who originally would have preferred to rent would now prefer to buy, which is pushing up the price of property.
“Rent fell after the property crash, so that young people could afford to move out and rent, often sharing accommodation,” he said.
This is a change from what Irish people traditionally did. As rents have started to increase again, young people will likely remain at home longer.
Gender, income or education, the cost of housing, and whether or not they are immigrants were all factored into the research.
It found that women are more likely to leave home earlier than men.
Rents have risen nationally by as much as 9% since last year, with a more than 14% increase in Dublin.
Stats published last week by the CSO show that the price of houses and apartments rose by 12.5% in twelve months up until June, compared to 1.2% the year previous.
In Dublin, prices are 24.4% higher compared to a year ago, while apartment prices in the city are rising at a slightly slower rate — up 18.2%, compared to June 2013.
However, Taoiseach Enda Kenny has said that he ‘doesn’t accept’ that there is a property bubble in the capital.
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Rents in Dublin are ridiculous, I’d rather give my parents a bit of a strange cash than to be ripped off by some landlord for a sub par overpriced room.
*Extra!!
Lol. Strange cash. I was wondering if that was just a phrase I never heard of.
I paid my parents rent for a while as thought the rents were crazy in Dublin. Turned out worked both ways. I paid rent but also contributed to the house like food sometimes and even did chores anyway. Chores like cleaning, hovering, ironing or gardening. Works out well in both ways. I hate it if I hear people live at home and never bother with either rent or helping out. If they are unemployed, at least help out around the house.
Having my kids stay at home and give me rent is my pension plan!
The greed of landlords in Dublin stunned me. For a rubbish “double bed” room I was paying 100 euro a month more than for a massive double bed en suite in the nicest area of Cork, with two shopping centres, a cinema and the nicest social scene a 20 something year old could want, it was manageable on the dole. Then Dublin North, in an area lacking of anything modern (closest pass machine, cinema, supermarket 10 miles away) with the constant noise of the airport I couldn’t even male ends meet with an after tax wage over double the dole.. makes no sense. Sort yourself out Dublin.
My exact experience Paul, good on you for saying it.
That’s why I wen’t the other way Paul ;)
Dublin is the capital, it’s always going to be more expensive than elsewhere in Ireland.
If you don’t want live/work there then don’t.
Thats a very narrow minded, bury your head in the sand mentality. Would you say the same thing to all the working poor? Families, homeless people, elderly all struggling to get by in a grossly mismanaged and overinflated city? Being put up in hotels at the states expense, the result of an unregulated market. If a young ,single, qualified, experienced person with a technical job cannot get by what hope does everyone else have? My landlord was a manager in a bank, not short of money at all, just a greedy git with no regulation to stop him. He wanted an extra 50 euro a week off me before I had a change to sign the agreed lease conditions, just because their was agreed whiff of recovery. I could go on and on and on, but everyone knows the story with the capital and all its shortcomings.
*50 euro month because their was a whiff of recovery
That doesn’t change the point I’m making. Dublin is a capital city and one will always pay a premium for living there. The same thing happens in ever capital city in the world.
Yes fair enough, all capitals do come with a higher cost, but Dublin is a complete rip off, it’s gone to far. Businesses can’t survive, families struggle, the landlord class keeps squeezing and getting richer and the taxpayer and economy end up picking up the tab. Bewleys cafe, homeless working families, I’d really prefer not refer to every example of this failed system.
I agree that capitals will have a higher cost. This is also due to the larger population. The issue with Dublin is that things are so expensive people cant afford to live there. Which in turn means people have less disposable income to spend. This in a few months to a few years will have a further knock on affect. Its fair enough people working in professional jobs earning enough to feed and clothe themselves and have some funds available to pursue things they enjoy. Not everyone is in that situation. If everyone who could not afford to live in Dublin left what would happen to all the students, bar/shop workers. All the people that basically help keep things ticking over ? The people no one cares about ? I agree its not the governments responsibility to keep a roof over peoples heads. We are all responsible for our lot. But it is the governments responsibility to work to soften the affect or try to prevent a double dip or regulate the rental sector to prevent a bubble. If people cannot afford to spend money other than rent, food and bills then the money is being accumulated with a minority and not being put back into the economy. I disagree with the cold nature of your comment. You’re not wrong in a sense. There is reasons for things being more expensive, but that doesn’t make it ok to leave as it is.
This is why Irish homes should have basements.
In Poland many young adult couples live on one floor, complete with kitchen, bedrooms etc and their parents on another. Separate doorbells too. Same house, separate lives.
Italy likewise,Grmany too.All contribute to the payment of rates,property tax etc.No biggie.
That w*#ker Enda needs a slap of a wet fish.
But in all seriousness the rent prices in this country are disgraceful we have a landlord at the moment jacking up the rent at his hearts content. There needs to be strict letting laws, that have maximum price that isn’t astronomical.
There were controls. Long story short a FF councillor/land lord in the 80s took the constitutionality of those controls to court. He won. Voila.
FF at what they do best… Ripping the country off and filling their back pockets.
Stayed home to save until I was 25. Did my own cooking and laundry etc and gave rent to my parents. Respected them and they respected me.
Bought a home at 25 and am paying €700 a month mortgage, around €500 less than what I would pay to rent my home.
Happily married and have great relationship with my parents.
If living at home is a respectful experience with a definite view and goal to saving, it can work very well.
I worked it out the other day, I’m paying less rent now in Melbourne (10 mins train/30 min walk from city) than what rent in my old place in Rathgar is now. Dublin is getting out of hand.
ya can’t beat mammy’s dinner
Let’s face it… This is propaganda to encourage families to accept children living at home past the age of 21.
In so many ways, adult children have no reason to leave home. With meals cooked, laundry done, food in the refrigerator, no house work or yard work to be done, and utilities bills paid… Why should an adult child leave home?
If an adult child wanted to leave home and venture out on there own…. They would find a way.
Oh ok, so with high youth unemployment and the cost of rent at the moment you think we should spend the little money we have on moving out rather than saving what we can? Most want to but are stuck, I feel sorry for any of your children if similar was happening to them.
I left home at 17, dunno how id do it now.€400 a month to rent a room in a dive in dublin, 600-700 for anything reasonable. what do you reckon you have to earn for 600 a month to be affordable before bill. Rent is a joke in Dublin at least. but then again you’ll be struggling to get a job outside it where rents are much more reasonable.
Marlon
What is an adult child ?
Surely the two can’t exist equally at the same time occupying the same space … Well maybe in the sticks, way way back there.
@Melanie Not everyone is in the same boat. There are a minority of young adults who are at home truley saving for there future. Helping out at home where they can and supporting the family by working for their keep (household chores). Furthermore, these same young people are holding down part-time jobs and attending government supported programs to gain knowledge and experience.
Are you one of these young adults? If so well done.
The fact of the matter is this…. If a young adult sits ar their parents’ waiting for the right economy, the right job, the right rent, the right apartment, the right day, the right home situation etc.
Then the person will never leave the nest.
During the Celtic Tiger many people had a false sense of importance amd self-worth. They jumped from job to job expecting high salaries. This type of existence was unsustainable. We are feeling it now as business aee re calibrating salaries. Everyone is feeling it.
Young adults really have to rethink their situation. No way, unless you are wealthy, will your first venture out will be like mom and dads’. What’s wrong with four people sharing a two bedroom apartment. What’s wrong with six people in a house?
There are many rewards gained by being independent from mom and dad.
@Glen If you parents… Then you are their child. Since you are an adult, Then you are your parent’s adult child.
Marlon i agree with you. I moved out and rented at 23 with my 4 year old daughter. I earned 22k a year gross, boyfriend a bit less. 3 months in he was made redundant but we managed to get by-barely.
I see parents that have their 20 somethings convinced they dont earn enough to rent just because they dont earn the same as the parents did in the boom years, but they never will. There needs to be a serious waking up done. None of the 20+’s i know seem to have a clue about prioritising the need to provide the fundamentals for themselves.
@Sam Thanks for agreeing. Our society really needs to wake up.
How many 20+ have cars, top mobiles, computers, dressed in the latest fashions?
I was able to move out at 17. I didn’t have a car (didn’t have a car till I was in my 30s), I shoped for clothes as needed, was at university full time and worked part time. My parents didn’t have the money to lend or give me. It was all me. Just like you, I made ends meet. I didn’t complain because I was socialised to believe that this type of living was an adventure and I had to pay my dues.
Maybe… Our society is suffering because too many parents and our government gives too much. People are comfortable with depending on someone to support them.
If they see the neighbour with something, they believe they are entitled to same thing. Regardless of the fact that the neighbour worked hard to get what he has and the person is not working.
By they way, congrats on raising your family as an independent person.
Calling them an Adult child sounds a bit creepy
Young generation are in a pickle. More and more jobs are paying a pittance. Some of these IT jobs offer a starting salary of around 22,000, after at least 4 years in college. With the cost of living in Dublin you would struggle to break even. It is looking very like the Japanese scenario where young graduates competed for years for few if any jobs. Gov is happy to sit on its fist as rising rents means the landlord class may not need to be bailed out. It is amazing how little of a youth revolt there has been. Maybe those who would have gone abroad.
Over the last few months there have been several reports on rising rent prices in the capital and in some cases the surrounding areas, simultaneously you see reports from Irish recruiters, start-up companies stating that in some sectors they are finding it difficult to fill roles in the Dublin Area, with a strong emphasis on roles relating to ICT. We have a country of skilled graduates and hard working citizens that would love the opportunity to move to Dublin (from outside counties) and surrounding areas in order to fill some of these roles, to either start or expand their careers, but due to soaring rent prices and the starting wage offered by a select few companies (not all) combined with the already ridiculous cost of living in the area, a vicious circle has formed that is preventing Ireland and its young people from assisting the countries attempt at growth. I am speaking from my own experience and from the experience of others around me in a similar situation that I have discussed this matter with. If the cost of living was affordable in the capital/surrounding area, there would be less difficulty filling jobs in the area, individuals would have more disposable income (which provides the potential for them to spend and keep stores and possibly others employed) and they would have money to save, which in turn would allow them to consider purchasing a home earlier or use the money to start their own company, which could have the potential to employ others. I think its time for Enda and Co to wake up and realize that by not addressing these property/rent issues, they may be crippling their own attempts at getting people back to work as there is less incentive for skilled people in close proximity to and outside the county to move into the area and take up employment
even if the rents were lowered, it could actually be worse, 100 viewers could increase to 200 viewers as the rent is lower. there simply is not enough places to go around. how many would apply for 2 similar jobs but want the one that pays most? same thing, you will find most will flock to the highest payer, in this case, the lower rent.
so lowering, well help, but won’t solve the shortage AND increasing demand that has gone beyond beyond. we hadn’t so much of this problem in the 90s, its ten fold now. Welcome to the the bigger EU.
I definitely won’t disagree with you there, you have a very good point. I am aware that the lack of accommodation available is also a key issue, I think I read somewhere recently (probably here) that a possible solution was being proposed by extending some form of building safety act so that currently excluded older buildings may be revamped and used as additional accommodation. There is also a project ongoing to identify and map derelict buildings within various areas of Dublin with the hope that they can be refurbished also. Again, good point.
I might have to move back in with my parents and I’m married
I’d be grateful if anyone could explain the following three sentences from the article. I’ve copied and pasted them as is:
(1) “New research suggests that young people were able to leave the family home sooner than ever before after the financial crash.”
(2) “Compared to before the financial crash, 2.3% more 25- to 29-year-olds and 2.1% more aged between 30 and 34.”
(3) “It found that women are more likely to leave home earlier than men.”
As long as the Irish leave their brains outside the polling booths they will continue to be ripped off by
- Landlord class that Max their Rent
- Banks that Max their Debt
- Political Parties that Max their Tax (private clubs passing Pro-Lobby Laws not Pro-citizen)
……… sad really.
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