Lack of rental homes is a threat to local businesses in Tipperary

The housing crisis is a threat to local businesses in Tipperary and the rest of the midwest.

That is according to Limerick Chamber in their latest Mid-West Rental Monitor report and Budget 2024 submission.

The rental monitor for May 2023 showed just 24 rental properties available in Tipperary in May. This represents a decrease of three on April’s monitor.

In line with the trend in Limerick, Tipperary had a higher accumulation of properties in certain areas.

In May, Nenagh had five properties for rent, the highest amount in the county.

Clonmel had three, Cahir- two, Thurles- two and Tipperary Town also had two. The average rental price was €1,035, the median price €1,000.

Median prices are given to adjust for the property type. So you don't need to directly compare a one-bedroom apartment with a three-bed house, for instance.

The average rental price for the midwest was €1,435 and the median was €1,250.

There was an increase in ‘Granny flats’ in Tipperary with two available in May. That is compared to none in March and one in April.

MIDWEST

Interestingly, when Limerick, Tipperary and Clare’s rental property availability is compared monthly between August 2022 and May 2023 the numbers are very similar.

Since August 2022, the highest number of available rentals in Limerick was 61 in August 2022 and the lowest was 23 in February 2023.

Comparatively in Tipperary, the highest was 55 in August 2022 and the lowest was 22 in March 2023.

This suggests little difference in availability despite perceptions that cities may benefit more than rural areas in terms of accommodation availability.

There were only 91 homes available for rent in the all of the midwest in May.

That is an increase of one. In Limerick, there were 44 and 23 in Clare.

WHY LIMERICK CHAMBER?

Limerick Chamber represents Limerick, Tipperary and Clare in policy because they are the only chamber with an inhouse director of policy.

There are four policy directors in the country. Two are in Dublin, and the other is in Cork.

So, Limerick Chamber represents all three counties on matters of policy.

Additionally, Limerick Chamber is the only chamber monitoring the housing crisis.

Their rental monitor is released once a month.

BUDGET SUBMISSION

Last week, Limerick Chamber submitted its recommendations for Budget 2024.

In their submission, Limerick Chamber President Miriam O’Connor says:

“As the unemployment rate approaches full employment, it is becoming increasingly challenging for businesses to hire locally, forcing them to seek international candidates.

In fact, there has already been a significant increase in the issuance of work permits in 2022.

Businesses not only have to navigate a competitive and demanding labour market, but also strive to ensure their employees have access to affordable housing, a growing challenge at both regional and national levels.”

The Limerick Chamber makes a number of recommendations in relation to affordable housing and rent as well as social housing.

In addition, in the Limerick Chamber Mid-West Economic Insights Report for Spring 2023, Policy Director and Chief Economist Seán Golden says:

“The midwest remains a great place to do business. However, housing is posing a serious risk to businesses, both existing and future.

“While there are some positive indications in commencements and delivery, they severely lag behind what is actually needed.”