Report published “Increasing housing supply does not guarantee improved access to housing”

ALTAX Observatory publishes the new study “Increasing housing supply does not guarantee improved access to housing”, an in-depth analysis of the development of the housing market and the construction sector in Albania during the period 2005–2025.

The study relies on official data from INSTAT, the Bank of Albania, financial analysis and demographic projections, to assess whether the increase in construction has been accompanied by a real improvement in access to housing for Albanian citizens.

What does the study show?

The main finding of the report is that the continuous increase in construction has not automatically translated into increased housing affordability.

The analysis highlights that:

Construction development is concentrated almost entirely in the Tirana–Durrës–Vlora triangle, while many other regions continue to lose population and economic activity.

Housing construction no longer follows the country’s demographic evolution, as the number of families is declining, while the housing stock continues to grow.

There is a significant gap between the real growth of the housing stock and the developments recorded through official building permits, raising the need for more transparency and traceability of the market.

Housing prices, especially in Tirana, have increased much faster than household incomes, making the purchase of an apartment increasingly difficult for the middle class. The financing of the market relies on a combination of bank capital, remittances and other sources of capital, creating a development structure that is not necessarily related to the real demand for housing.

Who is left out of the market?

The report identifies four categories that face the greatest difficulties in securing a home:

young people;

households that do not own an existing property;

workers with average wages;

emigrants returning to Albania without significant capital.

What does the study propose?

The report presents a set of recommendations for public policies, including:

expanding affordable housing programs;

promoting more balanced territorial development;

increasing transparency in the real estate market;

creating mechanisms that orient investments towards productive development and not only towards real estate;

strengthening the fiscal and planning capacities of local governments.

The study aims to shift the public debate from the question “How many houses are being built?” to the more important question:

“Who really has the opportunity to benefit from the houses that are being built?”

The main conclusion is that increasing the supply of housing, in the absence of policies that improve affordability, transparency and territorial balance, does not guarantee better access to housing nor a more inclusive development of the country.

This study aims to contribute to the public and institutional debate on housing policies, urban development and economic sustainability, by providing evidence, analysis and concrete recommendations for decision-makers, the business community, academia and the general public.