Renting a one-bedroom apartment in Kerry costs almost twice as much per month as buying it.
Rents across Kerry increased by an average of almost nine percent (8.8%) in 2024, and by 64 percent (64%) since the COVID-19 pandemic began in 2020.
The latest Daft.ie report highlights that the lack of supply in the rental market continues to drive up prices.
The report’s author, economist Ronan Lyons, emphasised the urgent need for reform, as there is a shortfall of between 150,000 and 200,000 rental homes nationwide.
The average rent in Kerry, across all residential property types, in October, November and December 2024 was €1,443.
This represents a quarterly increase of just over 2 per cent (2.2%), compared to a nationwide increase of almost 6 per cent (5.7%).
Breda Forrest has more
The average listed monthly rent in Kerry in Q4 of 2024 was €963 for a 1-bed apartment, €1,131 for a 2-bed house, €1,315 for a 3-bed house, €1,535 for a 4-bed house, and €1,604 for a 5-bed house, with annual increases ranging from 8.2% to 11.4%.
| Property Type | Average Rent (€) | Annual Change (%) |
|---|---|---|
| 1-Bed Apartment | €963 | +9.4% |
| 2-Bed House | €1,131 | +10.3% |
| 3-Bed House | €1,315 | +8.4% |
| 4-Bed House | €1,535 | +11.4% |
| 5-Bed House | €1,604 | +8.2% |
As of 1st February 2024, only 360 homes were available to rent in Munster, down 10% year-on-year and nearly two-thirds lower than the 2015-2019 average.
In Kerry, buying is significantly cheaper than renting, especially for smaller properties of one- and three bedrooms.
A 1-bed apartment costs €482 per month on a 4% 30-year mortgage mortgage, whereas renting the same property costs €963 per month - almost double.
Only four- and five-bedroom houses were slightly cheaper to rent than to buy, with mortgage payments being €64 and €3 more per month than their respective rental payments.
(Mortgage calculation parameters
Loan Term: 30 years
Loan-to-Value (LTV): 90%)
| Loan Term: 30 years | ||
| Loan-to-Value (LTV): 90% |
| Property Type | Mortgage (4% Interest) (€) | Mortgage (6% Interest) (€) | Average Rent (€) |
|---|---|---|---|
| 1-Bed Apartment | €482 | €605 | €963 |
| 2-Bed House | €589 | €739 | €1,131 |
| 3-Bed House | €805 | €1,011 | €1,315 |
| 4-Bed House | €1,599 | €2,008 | €1,535 |
| 5-Bed House | €1,607 | €2,019 | €1,604 |
Rental yield is the percentage return an investor earns from rental income compared to the property's price.
Smaller properties (1- and 2-bed homes) in Kerry have the highest yields (over 9%), meaning they give landlords a better return on their investment.
In contrast, larger homes (4- and 5-bed houses) have lower yields, as they generate less rental income relative to their purchase price.
Year-on-year (YoY) changes are minor but negative, indicating that yields have slightly declined compared to the previous year.
Gross annual yields across Kerry (%) and YoY change:
| Property Type | Kerry Yield (%) | YoY Change (%) |
|---|---|---|
| 1-Bed Apartment | 10.3% | -0.2% |
| 2-Bed House | 9.9% | -0.2% |
| 3-Bed House | 8.4% | -0.3% |
| 4-Bed House | 4.9% | -0.2% |
| 5-Bed House | 5.1% | -0.1% |
