Cost Rental delivers rents nearly 30% below market as ESRI confirms affordability gains
New microdata analysis highlights strong value for tenants but points to need for regional expansion and policy refinement
16 April 2026 | 📧 editor@ipropertyradio.com
New research from the Economic and Social Research Institute (ESRI) finds that Ireland’s Cost Rental model is delivering significant affordability benefits, with rents on average 29.9% below comparable market levels.
The study, funded by the Department of Housing, Local Government and Heritage, provides the first detailed microdata analysis of the State’s emerging Cost Rental sector. It is based on 3,595 Cost Rental tenancies recorded by the Residential Tenancies Board up to the end of Q2 2025.
Introduced under the Affordable Housing Act 2021, Cost Rental links rents to the cost of delivering and managing housing rather than prevailing market prices, while also offering long-term security of tenure.
The ESRI analysis shows that Cost Rental homes are delivering consistent savings for tenants when compared on a like-for-like basis with private rental properties in the same areas. The tenure is also addressing a structural gap in the rental market, with provision largely focused on apartments and smaller units, particularly one- and two-bedroom homes.
However, the research highlights that delivery to date has been geographically concentrated, with most Cost Rental homes located in suburban Dublin. The ESRI notes that expanding delivery to other urban centres and regional towns facing affordability pressures will be critical as the model scales.
The report also identifies policy considerations for the next phase of development. These include reviewing income thresholds and affordability criteria to broaden access, and reassessing how rents are set over time. In particular, the ESRI suggests that reducing the link between initial Cost Rental rents and market levels, and instead basing rents fully on underlying economic costs, could strengthen the long-term viability of the model.
Dr Rachel Slaymaker, ESRI researcher and co-author of the report, said the tenure is already proving its value. “Cost Rental is offering a more affordable, higher quality and secure alternative for many households. As the tenure expands, achieving a sustainable balance between affordability, financial viability and broader geographic delivery will be key.”
Prof. Conor O’Toole added that the model represents a structural shift in the rental system. “Cost Rental is a significant positive development in terms of broadening affordable rental options for Irish households. These findings show a clear affordability benefit relative to the private market.”
Minister for Housing James Browne said the research validates the Government’s approach, noting that thousands of Cost Rental homes have already been delivered. He said the finding that rents are “almost 30% below those in the private rental market” demonstrates that the cost-based model, supported by State funding, is having a tangible impact for moderate-income renters.
The ESRI report forms part of an ongoing joint research programme with the Department of Housing and is expected to inform future policy development as Cost Rental is positioned as a core component of Ireland’s long-term housing system.
