Principality of Andorra: Selected Issues
IMF Staff Country Reports, March 6, 2024
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Bibliographic details
- Published: March 6, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400268205.002
Housing affordability — key findings
- Granular analysis of housing affordability using microdata from the Survey of Living Conditions identifies the groups most affected to better inform and target housing policies.
- Affordability is lower for renters.
- Andorra is a renter-dominated real estate market, which combines with lower rental affordability to create a housing affordability issue.
- Low-income and low-skilled workers are disproportionally affected.
- Evidence indicates a supply and demand mismatch in the affordable segment of the Andorran housing market.
- Insufficient market fluidity exacerbates the shortage of short-term rentals and complicates the hiring of foreign workers.
Demand and supply dynamics analysis
- The study analyzes the evolution and characteristics of housing demand and supply dynamics in the country.
- Findings point to a mismatch between supply and demand specifically in the affordable housing segment.
- Market fluidity is identified as insufficient, contributing to shortages in short-term rental availability.
Policy implications and recommendations
- A multipronged policy approach is needed to address housing affordability.
- Policy design should carefully balance minimizing market distortions while increasing the stock of housing in the medium-term.
- Targeted interventions should prioritize low-income and low-skilled worker households and renters, given their disproportionate burden.
Content in this bundle
- Principality of Andorra: Selected Issues; IMF Country Report No. 24/58; February 9, 2024