## Principality of Andorra: Selected Issues

_IMF Staff Country Reports, March 6, 2024_

## Source details

**Canonical URL:** [Principality of Andorra: Selected Issues](https://www.imf.org/en/publications/cr/issues/2024/03/06/principality-of-andorra-selected-issues-545484)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/03/06/principality-of-andorra-selected-issues-545484/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/03/06/principality-of-andorra-selected-issues-545484/index.json)
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## Bibliographic details
- Published: March 6, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400268205.002

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### 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.

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## Content in this bundle

- **Principality of Andorra: Selected Issues; IMF Country Report No. 24/58; February 9, 2024**
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  - [Principality of Andorra: Selected Issues; IMF Country Report No. 24/58; February 9, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1andea2024002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/03/06/principality-of-andorra-selected-issues-545484_