Housing Market in Albania; Theoretical and empirical analysis
Abstract
The last decades, the housing market in Albania is experiencing considerable growth and development. Traditionally, customer preferences are towards owning the house rather than renting, leading to an increase in demand for housing. Buying a house is the biggest investment and fixed asset for a household. The factors affecting the housing market are complex and changeable. Fluctuations in this market affect the whole economic system of the country. In recent years, the demand for housing in Albania has been increasing, especially in large cities. This increase in demand has been influenced by urbanization, migration from rural areas to urban areas, as well as the increase in income and standard of living.
The main purpose of this paper is to analyze the main factors that affect the demand for housing. First part of the paper presents a diverse literature dealing with the complexities of the housing market. The other sections will have a combination between theoretical and empirical analysis using different methods. This paper is expected to contribute to the housing market analysis literature, considering that there are few studies in this field in Albania and the demand for such studies is high.
References
Gabriel, S. A. & Rosenthal, S. S. (2004). Quality of the Business Environment versus Quality of Life: Do Firms and Households
Like the Same Cities? Review of Economics and Statistics, 86(1), pp. 438-444.
Gyourko, J. & Linneman, P. (1993). The Affordability of the American Dream: An Examination of the Last 30 Years. Journal
of Housing Research, 4(1), pp. 39-72.
Hu, S.; Cheng, Q.; Wang, L. & Xu, D. (2013). Modeling land price distribution using multifractal IDW interpolation and fractal
filtering method. Landscape and Urban Planning, 110, pp. 25–35.
Malpezzi, S. (1996). Housing Prices, Externalities, and Regulation in U.S. Metropolitan Areas. Journal of Housing Research,
(2), pp. 209-241.
Murtazashvili, I. & Murtazashvili, J. (2016). The Political Economy of Informal Settlements in Albania. Public Choice, 169(1),
pp. 233-255.
Myers, D. & Ryu, S. (2008). Aging Baby Boomers and the Generational Housing Bubble: Foresight and Mitigation of an Epic
Transition. Journal of the American Planning Association, 74(1), pp. 17-33.
OECD (2011). Housing and the Economy: Policies for Renovation- Chapter on Economic Policy Reforms 2011. Going for
Growth.
Saiz, A. (2007). Immigration and Housing Rents in American Cities. Journal of Urban Economics, 61(2), pp. 345-371.
Stone, M. E. (2006). What is Housing Affordability? The Case for the Residual Income Approach. Housing Policy Debate,
(1), pp. 151-184.
Zoto, O.; Guga, E. & Llaci, S. (2013). Economic Growth and Housing Demand in Albania. Mediterranean Journal of Social
Sciences, 4(9), pp. 123-134.
https://data.worldbank.org/indicator/SP.RUR.TOTL
https://www.bankofalbania.org/Statistics/Time_series/
https://ec.europa.eu/eurostat/statisticsexplained/
index.php?title=Remittances_according_to_the_BPM6_manual#The_components_in_detail
Downloads
Published
Issue
Section
License
Copyright (c) 2024 EIRP Proceedings
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material
- for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
-
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.