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.