Factor Wages, Rents, and Real Estate Prices: Assessing Housing Affordability in Kosovo through an EU Comparative Lens
Session
Architecture and Spatial Planning
Description
Conside This paper examines housing affordability in Prishtina, Kosovo’s Capital City through an empirical analysis of income levels, rent burdens, and property prices. Drawing on data for average and minimum salaries alongside housing costs, it assesses the affordability gap facing low-income households. The findings show that in Prishtina, where the average housing price is €1,250/m², a minimum-wage earner would need about 15 years of net pay to purchase a 50 m² flat, nearly the same as 12 years in the EU. With realistic savings rates (20 %), the time to purchase a 50 m² flat in Kosovo requires extends to 18,4 years. Despite Kosovo’s significantly lower property values, low wages and disproportionate rents make both renting and ownership highly restrictive. Rent absorbs around 63% of an average salary in Kosovo, and thus in Prishtina, compared to 41% in the EU Capitals. These dynamics constrain household spending on health, education, and well-being, highlighting the urgency of policies promoting affordable housing and sustainable urban development.
Keywords:
Housing Affordability; Income-to-Housing Ratio; Quality of Life; Prishtina, Kosovo
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-982-41-2
Location
UBT Kampus, Lipjan
Start Date
25-10-2025 9:00 AM
End Date
26-10-2025 6:00 PM
DOI
10.33107/ubt-ic.2025.11
Recommended Citation
Ahmeti, Shqiprim; Ymeri, Anita; and Shalaku, Medina, "Factor Wages, Rents, and Real Estate Prices: Assessing Housing Affordability in Kosovo through an EU Comparative Lens" (2025). UBT International Conference. 12.
https://knowledgecenter.ubt-uni.net/conference/2025UBTIC/ASP/12
Factor Wages, Rents, and Real Estate Prices: Assessing Housing Affordability in Kosovo through an EU Comparative Lens
UBT Kampus, Lipjan
Conside This paper examines housing affordability in Prishtina, Kosovo’s Capital City through an empirical analysis of income levels, rent burdens, and property prices. Drawing on data for average and minimum salaries alongside housing costs, it assesses the affordability gap facing low-income households. The findings show that in Prishtina, where the average housing price is €1,250/m², a minimum-wage earner would need about 15 years of net pay to purchase a 50 m² flat, nearly the same as 12 years in the EU. With realistic savings rates (20 %), the time to purchase a 50 m² flat in Kosovo requires extends to 18,4 years. Despite Kosovo’s significantly lower property values, low wages and disproportionate rents make both renting and ownership highly restrictive. Rent absorbs around 63% of an average salary in Kosovo, and thus in Prishtina, compared to 41% in the EU Capitals. These dynamics constrain household spending on health, education, and well-being, highlighting the urgency of policies promoting affordable housing and sustainable urban development.