Property insights with Johnny Gannon Fair Deal Property
Galway renters are bearing one of the sharpest increases in Ireland’s deepening housing crisis, with the cost of a two-bedroom apartment in the city reaching €2,336 a month during the second quarter of 2026.
The latest Daft.ie Rental Report shows that the typical advertised rent for such a property rose by 13 per cent in the year to June. That is well ahead of the national annual increase of 7.7 per cent and leaves Galway more expensive than Cork, Limerick and Waterford for a two-bedroom apartment.
Smaller households face an even steeper climb. A one-bedroom apartment in Galway city averaged €1,647, an increase of 22.2 per cent year-on-year. The average rent for a two-bedroom house rose by 21 per cent to €2,274, while a three-bedroom house reached €2,534, up 14.9 per cent.
Pressure is not confined to the city. In County Galway, excluding the city, a two-bedroom apartment averaged €1,522, 13 per cent higher than a year earlier. A two-bedroom house cost €1,634, following a 21.5 per cent annual rise. For many workers and families, moving farther from the urban centre is therefore offering less relief than it once did.
At €2,336 a month, a Galway city two-bedroom apartment now carries an annual asking-rent bill of €28,032 before utilities. That places acute pressure on students, young professionals and families, while also creating wider challenges for employers trying to recruit and retain staff. It risks pushing more households into lengthy commutes or insecure accommodation across the wider region.
Across Ireland, listed rents increased by 1.4 per cent between March and June. This was a substantial slowdown from the record 4.4 per cent jump in the first quarter, but it still pushed the average monthly rent for a two-bedroom apartment nationwide to €2,204. Market rents are now 42 per cent above their pre-Covid level and 78 per cent above their Celtic Tiger peak.
The regional trend is especially striking. Cork, Galway, Limerick and Waterford recorded combined annual rental inflation of 10.1 per cent, the highest of the five regions examined.
These are, of course, all universities cities and this no doubt forms part of the demand story, particularly as student and international enrolments grow. But universities do not, by themselves, explain the rise in rents. Their effect is to intensify pressure on a rental market whose supply has failed to grow with the city. Where purpose-built student accommodation is insufficient, students compete with workers and families for the same limited stock. The university population is therefore an amplifier of Galway’s rental shortage, not its root cause.
Supply remains the central problem. On August 1, just 2,373 homes were available to rent nationwide. Although that was five per cent more than a year earlier, availability remained 46 per cent below the 2015-2019 average. The four regional cities had 295 homes available between them, almost twice the exceptionally low number recorded last year, yet still 42 per cent below the pre-pandemic norm.
Room renters are also feeling the squeeze. A double room in a Galway city house averaged €789 a month, while the equivalent in the county was €671. Nationally, the supply of rooms fell by 20 per cent year-on-year and room rents rose by 6.3 per cent.
The report also highlights a widening divide between those already in tenancies and those searching on the open market. Rents paid by sitting tenants increased by 2 per cent annually, less than one-third of the rise faced by movers. Since 2016, sitting tenants’ rents have grown by 22 per cent, compared with 78 per cent for new market rents.
The figures suggest that the early-2026 surge may have been a one-off adjustment linked to changes in rent regulation. However, slower quarterly growth offers limited comfort to Galway households competing for a scarce supply of homes. Without a sustained increase in suitable rental construction, affordability pressures are likely to remain a defining challenge for the city and county.
Johnny Gannon is the founder of Fair Deal Property, Estate Agents and Auctioneers Galway. For advice on buying, selling or developing, call 091 394593 or visit www.fairdealproperty.ie
