Property Insights by Johnny Gannon, Founder Fair Deal Property
In Galway, few topics spark more debate right now than Airbnb and its role in the housing crisis.
Scroll through any discussion, and you’ll see the same narrative repeated: short-term lets are taking homes away from families, driving up prices, and worsening an already strained market.
But for those of us working daily on the ground — from estate agents Galway to developers, buyers, and sellers, the reality is far more complex.
So the real question is this:
Is Airbnb the cause of Galway’s housing crisis, or is it being used as a convenient scapegoat for deeper structural failures?
Let’s start with the facts.
Across Ireland, there are over 151,000 short-term letting bed spaces , representing roughly 40% of the country’s tourism accommodation stock.
In Galway, this is not surprising.
Tourism is one of the city’s economic engines. From international visitors exploring the Wild Atlantic Way to domestic tourism throughout the year, demand for short-term accommodation is constant.
Platforms like Airbnb have allowed property owners to participate directly in that economy.
For many property owners in Galway, short-term letting provides:
In rural and coastal parts of Galway especially, short-term lets are not a luxury, they are essential.
There is no denying the housing pressure.
Across Galway, we are seeing:
It is easy , and politically convenient, to link this directly to Airbnb.
But the data tells a more nuanced story.
Recent research has found no direct causal relationship between increased short-term letting activity and a decline in rental tenancy registrations between 2019 and 2023.
So if Airbnb isn’t the primary driver, what is?
From the perspective of estate agents in Galway, the answer is consistent:
In other words:
The Galway property market is constrained by supply , not distorted by Airbnb alone.
If you are entering the market as a buyer, understanding this distinction is critical.
Because misdiagnosing the problem leads to poor decision-making.
1. Supply Is the Core Issue
The biggest factor influencing house prices in Galway is lack of available homes , not short-term rentals.
2. Demand Is Not Going Away
Galway continues to attract strong demand from first-time buyers, movers, and investors.
3. Timing Matters More Than Headlines
Waiting for a “collapse” driven by Airbnb regulation is unlikely to deliver results.
4. Strategic Buying Wins
Buyers who understand local supply dynamics will outperform those reacting to media narratives.
For buyers, the takeaway is simple:
Focus on supply trends, not just short-term letting headlines.
For sellers, the Airbnb debate has a different impact, and one that can directly influence sale outcomes.
1. Investor Demand Remains Strong
Despite regulatory uncertainty, investor interest in Galway property remains resilient.
2. Flexibility Drives Value
Properties that can operate as both long-term rentals and short-term lets attract broader buyer pools.
3. Regulation Is Creating Short-Term Urgency
Some buyers are acting now before potential restrictions tighten.
4. Execution Still Determines Price
No matter the market, pricing strategy, presentation, and marketing remain the biggest drivers of final sale value.
For auctioneers Galway, this reinforces a consistent truth:
Market conditions influence outcomes , but strategy determines them.
At the centre of this debate is a group that is often overlooked: property owners.
There is a fundamental principle at play here.
If you own a property, you should have a reasonable degree of freedom in how you use it.
Many Galway property owners:
To change those rules retrospectively raises legitimate concerns.
For some, short-term letting is not a side income, it is their primary livelihood.
The Government is now moving toward tighter regulation of short-term lets.
Key measures include:
There is also a proposed distinction based on population size.
In towns with populations over 20,000, new restrictions may limit additional short-term letting activity.
This will directly impact parts of Galway.
For estate agents Galway and property owners, this represents a significant shift in how property can be used.
Tourism contributes approximately €7 billion annually to the Irish economy.
In Galway, its importance is amplified.
Short-term lets:
Restricting them too aggressively risks damaging the very economies that depend on them.
This is why policymakers are attempting a balancing act.
Here is the uncomfortable truth:
Even if every Airbnb in Galway disappeared tomorrow, the housing crisis would not be solved.
Why?
Because the core issue remains unchanged:
Until these issues are addressed, pressure will remain in the market.
Airbnb may influence availability at the margins.
But it is not the foundation of the problem.
Looking ahead, several trends are likely:
For buyers and sellers, the key is understanding how these changes affect behaviour, not just headlines.
The image of tourists staying in homes while families remain in hotels is powerful.
But it is not the full picture.
The Galway property market is shaped by multiple forces — and short-term letting is just one of them.
For those working in the industry — from auctioneers Galway to developers — the priority is clear:
We need more homes. Faster.
Because until supply increases, the pressure will remain — regardless of how Airbnb is regulated.
So, is Airbnb a scapegoat or a silent driver?
The honest answer is:
It is neither and both.
It is not the root cause of the housing crisis.
But it is part of how scarce housing stock is allocated.
And that means it cannot be ignored.
For more insights on the Galway property market, visit www.fairdealproperty.ie
Johnny Gannon is the founder and CEO of Fair Deal Property , your trusted partners for residential property sales, where ethical standards meet performance-led outcomes.