Tirana rental market faces rising costs as short-term rentals expand

The rental market in Tirana is undergoing a significant shift as long-term housing becomes increasingly expensive and scarce. In the first half of 2026, average monthly rents for 1+1 apartments reached 590 euros, while 2+1 units rose to 954 euros, representing increases of 4.4% and approximately 26% respectively compared to the previous year.

This trend is driven by a massive migration of properties toward short-term rental platforms like Airbnb. While short-term rentals generated nearly 50 million euros in total earnings across Albania in the first half of 2026, the market shows signs of maturity with a slowdown in new listings. In Tirana, the average daily income from Airbnb was approximately 25.5 euros, or 765 euros per month, before accounting for operational costs and taxes.

The rising costs are creating a housing crisis for middle-class families and young professionals. Data suggests that an individual may need to spend up to 77% of their gross monthly income to cover housing costs in the capital. Consequently, many families are choosing to relocate to nearby cities such as Elbasan and Durrës to find more affordable living alternatives while continuing to work in Tirana.