Rents have almost doubled in the last decade, latest figures have revealed.
The ESRI (Economic Social Research Institute) think-tank analysis shows that the average rent rose from €589 to €1,084 per month between 2012 and 2021 in real terms, an increase of 84%.
At the same time, the researchers from the ESRI also say that income inequality is at a record low, meaning that the gap between rich and poor is smaller than ever.
Read More: Renters warned of fake property listings scam and forged Government documents
Up to now, historically low interest rates and the expansion of government rent supports acted to insulate most lower-income households from the rapidly rising rents of the past decade.
Unfortunately, this could change in the near future after the ECB (European Central Bank) announced interest rate hikes yesterday, with more predicted over the next six months.
Barra Roantree, an economist at the ESRI and an author of the report said: “Addressing the challenges of housing affordability highlighted in our report will require a sustained increase in supply, particularly of social and cost rental housing.
“Until that is achieved, and despite the large costs involved, supports like HAP will continue to play a key role.
“Given this, more regular review of the income and rent limits governing the scheme will be needed if the exposure of more households to unaffordable housing costs is to be avoided.”
Michelle Barrett, another author of the report, is concerned for households with disabled people who may be missing from the official poverty statistics.
She said: “Our report finds that the way poverty is officially measured potentially excludes many individuals in households affected by a disability.
“This is because it does not account for the substantial extra costs of living faced by this group, and suggests that there may be a case for revisiting the way the income-related component of the official poverty indicator is measured.”
Paul Redmond, an economist at the ESRI and another author of the report highlights the prevalence of the ‘working poor’ in our society.
He said: “In work-poverty is an area of concern as it is linked to lower well-being and social exclusion.
“In 2019, approximately 220,000 people were affected by in-work poverty in Ireland.
“This was particularly prevalent among supported renters and lone parents.
“The working poor were also disproportionately reliant on someone earning the minimum wage.
“However, increasing the minimum wage will have a limited impact on overall poverty reduction, as most people at risk of poverty do not work.
“This highlights the need for other policies to tackle poverty, such as affordable, quality childcare to allow full-time work by at least one adult in a household.”
Denise Charlton, Chief Executive of The Community Foundation for Ireland who funded the research said: “Despite the progress in reducing income inequality, this report highlights significant challenges in relation to poverty, something the 5,000 voluntary, community and charitable partners of The Community Foundation for Ireland respond to each day.
“The identification of key at risk groups like renters, people with disabilities, lone parents as well as the ‘working poor’ will help inform that work.”
READ NEXT:
Special rule could see politicians drinking later than punters despite new laws
Gardai braced for revenge attack after Tallaght submachine gun ambush
Bank holiday Sunday and Monday opening hours for Tesco, Aldi, Lidl, and more
Man told gardai at crash scene 'I've killed my best friend - I wish it was me'
All you need to know about Dublin Marathon road closures and alternative routes
Get breaking news to your inbox by signing up to our newsletter
