Perfect storm for Leitrim renters in housing shortage and Airbnb boom

Leitrim is experiencing a sharp increase in rental prices, with average monthly rents now reaching €1,139. Although Leitrim still has the lowest rents in Ireland, this recent surge highlights a troubling national trend of rising housing costs.

Sinn Féin Councillor Cormac Flynn describes the situation as a “perfect storm” for renters due to a desperate shortage of housing. “There is a desperate shortage of housing in Leitrim. Only a few housing units become available per month to those on the housing list.” He attributes part of the surge in rental prices to the rise in people working remotely: “The fact that so many workers can now work remotely means that people who previously lived and worked in cities are now residing in Leitrim and working from their homes.”

Flynn also points to the impact of short-term rental platforms like Airbnb: “The proliferation of Airbnb in some areas means that housing, which was previously used to home families, is now not available to those families.” He highlights additional challenges, such as restrictive planning regulations: “Housing which should have been built in rural Leitrim over the past 10 years was never constructed due to over-strict planning laws related to septic tanks. Although these regulations have slightly changed, the legacy remains.”

The broader population dynamics and recent events have further exacerbated the crisis. “Towns like Carrick-on-Shannon were immobilized by the lack of an announcement regarding the planned bypass. This uncertainty left landowners, developers, and the council unable to proceed with major housing developments.” Flynn also noted that “the war in Ukraine has introduced a significant number of people to Leitrim, for which there was no prior planning.” The influx of new residents, combined with minimal uptake in refurbishing derelict housing, has worsened the housing shortage.

North Leitrim Councillor Eddie Mitchell highlighted the difficulties faced by local families: “There’s no emergency accommodation in Manorhamilton. Families that find themselves in difficulties and can’t access affordable renting accommodation in North Leitrim are being put into emergency accommodation as far away as Ballinamore. We need to have a conversation about how we can support families who are trying to make a life in Leitrim.”

The shortage of rental properties remains a pressing concern. Justin Farrell, a real estate agent with Sherry FitzGerald Farrell, described the situation as severe: “The area is critically undersupplied with rental accommodation. The South Leitrim/North Roscommon area has an alarming lack of available accommodation at present.” Farrell noted that this shortage is impacting local businesses and workers: “There is certainly a struggle for staff around the county to find adequate and affordable accommodation, and we are also seeing more and more inquiries from people working in the Sligo and Longford areas.”

As rents rise in urban centers, more tenants are considering relocating to Leitrim. Farrell observed, “As rents climb higher in Dublin and larger urban locations, it is creating an additional cohort of tenants looking at areas like Carrick-on-Shannon, Manorhamilton, Leitrim Village, and Drumshanbo, combined with strong local interest in the same properties.”

The escalating rental prices and housing shortages in Leitrim reflect a broader national crisis, underscoring the urgent need for strategic planning and supportive measures to address the growing challenges in Ireland’s housing market.