The cost of renting a home in Galway City is increasing at a faster rate than the rest of the country, with the city having the most expensive tenancies outside of Dublin.

Average rents rose by 6.1% for existing tenancies in Galway City in the fourth quarter of 2023 – the largest annual change recorded for any city in Ireland.

And Galway City had the most expensive average rents for new tenancies in Ireland bar Dublin, as lack of supply of rental properties continued to fuel spiralling rents.

The new statistics are contained in the latest Rent Index published by the Residential Tenancies Board.

The report shows that standardised average rent for new tenancies in Galway City was €1,581 per month in the fourth quarter of last year. Only Dublin at €2,030 per month had higher average rents for new tenancies.

In County Galway, new tenancies commanded average rents of €1,221, or €360 per month cheaper than the city, but it still represented growth of almost 15% in rents for new tenancies in the county.

Existing tenants in Galway City were paying lower rents than new tenants, at an average of €1,302 per month, but that was still an increase of 6.1% – the largest annual growth of any city in Ireland.

Standardised average rents in County Galway grew faster, by 7.3% in quarter four of last year, when average rents were €1,011.

By Local Electoral Area, Galway City Central was by far the most expensive for renters with new tenancies paying average rents of €1,660 and existing tenancies paying average rents of €1,387.