Affordable Housing in Albania: Challenges and Effective Strategies. Eneida MUHAMUÇI

Author: Eneida MUHAMUÇI
Affiliation: POLIS University

Abstract
Affordable housing stands as a pressing global issue, influenced by political, climatic, and econom- ic shifts. This challenge is acutely felt in developing nations, and Albania, undergoing a protracted transition since 1991, is no exception. Previously, housing in Albania was government-provided, owned solely by the state. However, owning a house has become a cherished aspiration for Alba- nians, highlighting the critical shift in housing dynamics.
Albania’s housing landscape has witnessed an alarming trend – the escalating cost of housing to the point where it becomes a near-impossible dream for many. As of 2023, Albania ranks third in Europe for having the most expensive apartment prices relative to income, as reported by Number, a leading global data source.
This mounting housing affordability crisis isn’t isolated; it catalyses a cascade of societal, eco- nomic, and political issues in Albania. Official statistics from Instat reveal a significant decline in Albania’s population, primarily driven by the steady emigration of young people over the past five years. Simultaneously, informal construction has emerged as a means for some Albanians to secure shelter, although it comes at a significant cost to urban environments and the nation as a whole.This research paper seeks to delve into effective and beneficial policies tailored to Al- bania’s unique context, with a particular focus on Tirana, its capital. Through an in-depth case study, we scrutinize the impact and applicability of key policies. These include minimizing fees for lower-priced housing, streamlining development approval and permitting processes, identifying suitable parcels for affordable and accessible development, remediating brownfields, providing targeted tax and fee discounts, addressing neighborhood concerns, enhancing building design and resource efficiency, improving affordable transportation options, discouraging rental restric- tions, and implementing maintenance and rehabilitation programs for affordable housing.