With the Times reporting this week that twenty-five percent of Dublin’s population now lives in privately rented accommodation, the highest since records began, our focus is once again drawn to the housing situation in the capital. The city’s success in effectively promoting itself as a global investment hub does not exempt those in charge from addressing its failure to invest in infrastructure and address the chronic undersupply of housing. If anything, the two are mutually inclusive.
The availability of housing has been problematic for many years now, exacerbated by the 2008 crash and subsequent slowdown in the construction industry. Compounding pressures from institutional landlords and digital property marketplaces, such as Airbnb, have put further pressure on the availability of affordable housing in the Capital. This is, in part, due to an overall lack of supply, which paired with ever-increasing demand is driving steady price increases.
Unfortunately, unlike their fellow Europeans, the Irish have traditionally favoured home ownership over renting. Whilst it is becoming increasingly accepted, renting is still second choice. With house prices steadily rising, the rental market will have to become a suitable alternative to getting on the property ladder.
Another factor affecting the long-term rental offering in Dublin, is Airbnb. Its success in cities around the globe has impacted on long-term letting rental availability in many places, Dublin included. Allegations that there was at one time more Airbnbs available in Dublin than long-term rentals led to protests from campaign groups angry at the lack of availability for residents.
With property values continuing to rise, many Dubliners will have to come to terms with long term renting. Property ownership, especially in areas such as Dublin, will only become harder and more unaffordable. With this increasingly clear, it is surprising to see little being done to improve rental availability.
The current legislation is deterring developers from investing in new housing models, such as Build-to-Rent. This, alongside a historic fear of building at height and density in Dublin, is keeping the city from becoming truly world-class.
There will need to be a stark change in approach to properly combat this problem. For development in Dublin to become more effective, local authorities and developers must work in synergy to create accommodation that is both affordable and attractive to those wishing to live and work in the capital.
Policies that attract foreign investment in commercial assets alone are not enough to create a world-class destination. The government must understand that the present failure to invest in key areas such as housing and public infrastructure is causing Dublin to fall behind other cities. Balancing the intricate components of a hard-working and efficient city are mammoth tasks but ones that the best are tackling head on. Dublin must follow suit.