Albania is starting to feel the first negative effects of tourism as short-term rental properties are increasing the cost of housing for those who do not have a home of their own.
Official data from INSTAT show that housing rents were 7.1 percent higher in April this year than in the same period last year.
According to Instat, the increase in rents is one of the main components that is influencing the increase in inflation in the country.
The rapid increase in rents is linked to the shrinking supply in the market because an increasing number of properties that were destined for the rental market are now listed on AirBNB for short-term rentals.
The shrinking supply has shifted the price curve upward, as families who do not own homes find it increasingly difficult to afford the cost of rent.
The upward trend in rental prices is not expected to stop in the coming months, reflecting the seasonal effect of tourism, although according to market agents, demand for even expensive rental apartments is being led by the capital.
This is a phenomenon that has massively affected many countries that have mass tourism. Governments in many of these countries, such as Spain, Italy and Greece, are intervening with aggressive measures by restricting the provision of short-term rental properties to deal with the housing crisis.
In many cities, citizens have even protested against foreign tourists, who not only make housing more unaffordable for locals, but also increase the cost of living across their entire spectrum, including basic products.
Editorial
