Surging housing costs are significantly impacting employment in major cities, as employers face growing challenges in recruiting and retaining staff. Rising living expenses and escalating home prices have driven many employees out of capital cities like London, Dublin, and Amsterdam, triggering a wave of staff shortages.
To address the issue, several companies have introduced housing benefits as part of their employee packages. Foreign workers, in particular, are reluctant to relocate without substantial perks, such as paid or subsidized accommodation.
reland’s worsening housing crisis exemplifies the trend. In Dublin, the average monthly rent in the city center reached €2,377 in the second quarter of 2024, according to Statista, while the number of available homes fell to 51,000, down from 63,000 in 2022.
Several companies, including Ryanair, Musgrave, and Killarney Hotels Collection, have responded by investing heavily in staff housing. Ryanair purchased 40 houses near Dublin Airport earlier in 2024 to provide affordable rental options for new cabin crew. While the move drew criticism from politicians accusing the airline of reducing housing availability for other buyers, CEO Michael O’Leary defended the decision, emphasizing the need to prioritize employees.
“In recent years the absence of affordable rental accommodation has been a major impediment to recruiting and training new Irish and European cabin crew members to Ryanair’s inflight team,” the company stated.
Other businesses have followed suit:
- Musgrave: Maintains 50 rental properties for staff.
- Windmill Healthcare: Operates 28 rental properties and plans to expand further.
- Supermacs: Reportedly spent €6–€7 million on staff housing.
- Killarney Hotels Collection: Provides subsidized housing since 2019.
The situation is similarly dire in London, where public sector recruitment has been hampered by high rents. In November 2024, the average monthly rent reached £2,151 (€2,569.46), while average property prices rose to £267,500 (€319,534.10), according to Zoopla.
The Metropolitan Police and other sectors have faced recruitment challenges following the sale of section housing for younger officers, exacerbating the scarcity of affordable homes for public sector workers. Public sector pay in London increased just 14.9% since 2016, lagging behind the UK average and the city’s private sector, which saw a 17.4% rise.
