Rental housing boom faces first test/ Supply is growing faster than demand

2026-06-08 07:16:00, Ekonomi CNA

The tourist apartment market is continuing to expand at a rapid pace, but the latest data from AirDNA (a data analysis company for short-term rentals, such as those on Airbnb and Vrbo platforms) shows that supply is growing faster than demand, a development that is being reflected in slowing price growth and softening occupancy rates.

During the last 12 months to March 2026, Albania registered an average of nearly 27 thousand active units on the Airbnb and Vrbo (Vacation Rentals by Owner) platforms, marking the highest annual increase in supply among Balkan countries, by 19%.

The market has undergone a rapid transformation compared to 2019, when the number of listings was under 6,000. According to AirDNA, the post-pandemic period was characterized by strong increases in both demand and supply, with new waves of market entries during 2022-2023 and again during 2024-2025.

The demand for overnight stays continues to grow. Over the past year, it expanded by 18% compared to the previous year, while the revenues generated by the sector reached 133.7 million euros, with an annual increase of 19%.

However, the pace of supply expansion has begun to outpace demand. AirDNA notes that this trend has impacted the performance of key performance indicators.

The average occupancy rate reached 54% over the past 12 months, compared to 43% before the pandemic, but the annual growth of this indicator has slowed and in some periods has crossed into negative territory.

At the same time, the average daily rate (ADR) rose to 57 euros per night, over 50% higher than the pre-pandemic level. However, over the past year, price increases were only 1% compared to the previous year.

The data also shows that the Albanian market remains highly seasonal. In 2025, February demand represented only 28% of the July level and 23% of the August level, the months with the highest tourist activity.

According to AirDNA, Albania remains one of the fastest-growing short-term accommodation markets in the region, with new supply continuing to enter the market following the continued growth in demand in recent years./ Monitor