Record 4,600 Apply for Dublin Cost-Rental Apartments
Over 4,600 Applicants Vie for Just 195 Cost-Rental Apartments in Dublin
Dublin, Ireland – A staggering 4,608 applications flooded in for just 195 cost-rental apartments at the Shanganagh Castle development in south Dublin, highlighting the intense demand for affordable housing in the Irish capital. This marks the highest number of applications for any State-subsidized rental scheme to date.
The Land Development Agency (LDA) apartments, offering long-term tenures and rents typically 25% below market rates, have proven incredibly popular. Though,the overwhelming response also underscores the critical shortage of rental properties,especially in Dublin.
“The rent for these is the equivalent of a mortgage,” noted housing academic Lorcan Sirr, lecturer on housing policy at Technological University Dublin.”Actually, the three-bed is more expensive than a €350,000 mortgage. This says to me there are an awful lot of people out there desperate for a home to own, who could afford mortgage repayments, but can’t find anywhere to buy.”
High Demand, Limited Supply
Applications for the apartments, ranging from €1,175 for a studio to €1,775 for a three-bedroom unit, were open for just one week. While 4,608 applications were received, only 2,215 met the eligibility criteria, which include income limits and affordability assessments. A lottery will be held in early January to select tenants from the eligible pool.
This surge in applications comes amidst a broader affordability crisis in Ireland’s housing market. A recent report by the Banking and Payments Federation Ireland (BPFI) revealed that first-time buyers are now paying €88,000 more for a house than they did five years ago. The median income for first-time buyers purchasing a new property in the first half of 2024 was €90,000, with a median age of 35.
cost-Rental: A Solution or a symptom?
While cost-rental housing aims to provide affordable options for low- and middle-income earners, critics argue that the model, as implemented in Ireland, is too expensive, particularly in Dublin.
“There is a fundamental flaw in the Irish model of cost-rental, which seems unique across Europe, that the cost-rental is more expensive than a mortgage,” Sirr stated. “The policy emphasis for the next government should be not on the development of housing specifically for rent but the development of housing for people to buy at affordable levels.”
Construction Ramp-Up
Despite the challenges, construction activity is on the rise. Figures from the Department of Housing show that construction started on 54,574 homes in the first 11 months of 2024, an 84% increase compared to the same period last year.
The LDA’s Shanganagh Castle development, the agency’s largest to date, is a prime example of this construction boom. In addition to the 195 cost-rental apartments, the estate will also feature 51 “affordable purchase” houses, 40 more apartments for sale next year, and 111 additional cost-rental apartments in 2025.The remaining 200 apartments will be allocated for social housing.
The high demand for the Shanganagh Castle apartments underscores the urgent need for more affordable housing solutions in Ireland. While cost-rental offers a potential avenue, experts argue that a greater focus on affordable homeownership is crucial to addressing the root causes of the housing crisis.
Desperation Fuels Record demand for Dublin Cost-Rental Apartments
Dublin,Ireland – Over 4,600 applicants vied for just 195 cost-rental apartments at the Shanganagh Castle progress in south dublin,highlighting Ireland’s dire housing crisis. This marks the highest number of applications for any State-subsidized rental scheme to date.
“The rent for these is the equivalent of a mortgage,” noted housing academic Lorcan Sirr, lecturer on housing policy at Technological University Dublin.”Actually, the three-bed is more expensive then a €350,000 mortgage. this says to me there are an awful lot of people out there desperate for a home to own, who could afford mortgage repayments, but can’t find anywhere to buy.”
applications for the apartments,ranging from €1,175 for a studio to €1,775 for a three-bedroom unit,were open for only one week. While 4,608 applications were received, only 2,215 met the eligibility criteria. A lottery will be held in early January to select tenants.
This surge in applications comes amidst a broader affordability crisis. A recent report by the Banking and Payments Federation Ireland (BPFI) revealed that first-time buyers are now paying €88,000 more for a house than they did five years ago.
While cost-rental housing aims to provide affordable options, critics argue that the Irish model is too expensive, especially in Dublin. “There is a fundamental flaw in the Irish model of cost-rental, which seems unique across Europe, that the cost-rental is more expensive than a mortgage,” Sirr stated. “The policy emphasis for the next government should be not on the development of housing specifically for rent but the development of housing for people to buy at affordable levels.”
Despite challenges, construction is on the rise. Figures show that construction started on 54,574 homes in the first 11 months of 2024, an 84% increase compared to the same period last year.
The Shanganagh Castle development, the Land Development Agency’s largest to date, exemplifies this boom. In addition to the cost-rental apartments, it will also feature affordable purchase houses, apartments for sale, and additional cost-rental apartments. The remaining apartments will be allocated for social housing.
The high demand underscores the urgent need for more affordable housing solutions in Ireland. While cost-rental offers a potential avenue, experts say a greater focus on affordable homeownership is crucial to tackle the root causes of the housing crisis.