A new development of 24 cost-rental homes is set to expand the supply of below-market rental accommodation in Dundalk, with monthly rents starting at €1,122.
The homes are being delivered at Hearthfield on Mount Avenue and will comprise 12 two-bedroom duplexes and 12 three-bedroom duplexes.
According to Tuath Housing, the properties are expected to become available from late November or early December 2026.
The development comes as renters across Ireland continue to face limited availability and high asking rents, with affordability pressures increasingly extending beyond Dublin.
Two- and three-bedroom homes available
The 24 homes are divided equally between two property types.
There will be:
- 12 two-bedroom ground-floor duplexes, measuring approximately 73 square metres, with a monthly cost rent of €1,122.
- 12 three-bedroom first- and second-floor duplexes, measuring approximately 117 square metres, with a monthly rent of €1,407.
The properties are part of the cost-rental sector, where rents are calculated on the basis of the cost of providing, managing and maintaining the homes rather than being determined solely by prevailing market rents.
Tuath says cost-rental homes are offered at least 25% below the market rent for an equivalent property in the local area.
Who can apply?
Cost-rental housing is aimed at households that are above the income threshold for social housing but may still have difficulty securing suitable accommodation in the private rental market.
For properties outside Dublin, Tuath currently requires applicants to have a net household income below €59,000 a year.
Applicants must also meet a number of other conditions.
They cannot own a property in Ireland or elsewhere, cannot be receiving social housing supports such as HAP or Rent Supplement, and the size of their household must correspond with the property for which they apply.
Applicants must also demonstrate that they can afford the rent. Tuath states that the cost-rental charge should generally not exceed 35% of net household income, although affordability is assessed as part of the application process.
Long-term rental security
One of the main differences between cost rental and conventional private renting is the intended long-term nature of the tenancy.
Cost-rental homes are designed to provide greater security of tenure, with rents linked to the cost of providing the accommodation rather than simply following movements in the private rental market.
Tuath states that after six consecutive months in occupation, and where there has been no valid notice of termination or breach of tenancy obligations, the tenancy becomes one of unlimited duration.
The properties cannot subsequently be purchased by the tenants.
A deposit is required before a successful applicant takes up a tenancy.
Dundalk rental supply under pressure
The arrival of 24 additional cost-rental homes is relatively small compared with the overall demand for rental accommodation, but it provides another source of housing outside the conventional private rental market.
The development is also significant because cost-rental housing is intended to provide a middle ground between social housing and private renting.
Households who do not qualify for social housing can still find themselves priced out of the private market, particularly where rents have risen faster than household incomes.
The latest national rental-market data underline the wider problem.
Daft.ie reported recently that there were fewer than 2,400 homes available to rent across Ireland on 1 August, considerably below the levels recorded before the pandemic. While availability outside Dublin had increased over the previous year, the overall supply remained historically low.
What the Dundalk development adds
The Hearthfield homes will add 24 long-term rental properties to the local market, with the three-bedroom homes potentially providing an option for families who need more space than is available in smaller rental units.
The two-bedroom homes, meanwhile, could appeal to smaller households looking for a more secure alternative to conventional private renting.
The development is situated on the western side of Dundalk and has access to schools, childcare facilities, public transport and the town centre, according to Tuath’s development information.
The location also provides access to transport connections linking Dundalk with other parts of the country.
Cost rental is expanding beyond Dublin
The Dundalk scheme is part of a broader expansion of cost-rental housing across Ireland.
Tuath says it has now provided more than 1,000 cost-rental homes, with rents on its schemes starting at 25% below the average rent for comparable properties in the surrounding area.
Recent developments include cost-rental properties in areas such as Donabate, Citywest and Blessington, demonstrating that the model is being used across different parts of the country rather than being concentrated exclusively in Dublin.
For Dundalk, the additional homes provide a further option for households struggling with private-market rents.
Demand could remain high
The 24 homes are unlikely to resolve the wider shortage of affordable rental accommodation in Dundalk.
Cost-rental developments remain limited compared with the size of the overall rental market, while competition for reasonably priced homes continues across Ireland.
For eligible households, however, the difference between a rent of €1,122 for a two-bedroom home and the cost of a comparable property on the open market can be significant.
The final impact will depend on how many households apply and how the new homes compare with other rental options available locally.
Applications for Hearthfield are being handled through Tuath Housing’s cost-rental process. Applicants must meet the eligibility requirements and provide documentation to verify their circumstances.
The homes are currently expected to become available towards the end of 2026.
For Dundalk renters, the development adds a modest number of new homes to a market where secure and affordable rental options remain in short supply.
