This time last year we were at between 8,000 and 9,500 rentals. Last Jan, we were at 10,000.
So I’ll give them the benefit of the doubt and say they were working on 10,000. 40% on that is 14,000. According to daftwatch, this was the level in June/July.
Could it be that the volume of properties has increased 40% but due to the fact places are not renting, the number on the site is much higher than 40%?
Last year - 1000 houses come up for rent every month, but over the course of the month they are all rented and the supply stands at 1000.
This year - 1400 houses come up for rent every month, but only 400 are rented so the supply increases by 1000 a month.
Now this might be picked up as an increase of 40% in the supply volume, while the total volume is increasing at a much larger rate.
If I list a house for rent this month, and it doesn’t rent, then in effect I’m listing it again next month. It’s not different to a house being listed for the first time, it’s just another house available to rent.
I reckon this was just sloppy research. I sincerely doubt anyone actually gave it enough thought to come up with a 40% figure by the means you describe.
Don’t get me wrong… it wouldn’t indeed be stupid. If I’m looking to rent somewhere it doesn’t matter a jot how quickly those places come on the market… all that matters is that they are vacant and available when I’m looking. Highlighting available property would be far more instructive, but this is RTE
It’s much more likely that they just went… ‘80% increase… nah that can’t be write… let’s say 40%, that sounds like a lot’.
Tis like the 20% reduction in yesterdays times… the price dropped from 575 to 525 and they reckoned it was a 20% reduction. Maybe there is a ‘what it’s worth factor’ at play here. If the house you are sellign is reduced by 10% and you reckon it’s worth more then you can multiply the drop by 2.
I’ve always been a fan of stats… ever since that survey showed 100% of women thought I was the hottest guy on the planet.
I’ve wondered about this myself, and while I’m sure it is a factor I think it is a minor one. The way that rental prices are reacting and other anecdotal evidence does agree with a large increase in rental supply. Also, the private rental sector only consisted of about 145k units in 2006.