Tirana rental costs reach critical levels of unaffordability

Tirana has become one of the most unaffordable cities in Europe regarding the rent-to-income ratio. According to a Tradingpedia report, an individual with an average net monthly income of 760 euros would need to spend approximately 93% of their salary on housing to cover the average rent of 710 euros in May 2026. This makes Tirana the second most unaffordable capital in Europe, following Lisbon, Portugal.

Data from the real estate agency Century 21 indicates that between January and June 2026, average monthly rents for 1+1 apartments reached 590 euros, while 2+1 apartments averaged 954 euros. These figures represent significant increases compared to the same period in 2025, with 2+1 apartment prices rising by approximately 26%.

INSTAT data corroborates this upward trend, showing that annual rental price changes have fluctuated between 1% and 8.5% since March 2022, with an acceleration in growth noted starting in May 2025. The rising costs are attributed to increased demand, the expansion of short-term daily rentals, and limited supply.