Housing Costs Top Andorrans' Concerns at Record 74%

A new survey from Andorra Recerca + Innovació (AR+I) shows housing costs as the leading concern for 74% of Andorrans, up from 70% in the first semester of the year and marking the highest figure since tracking began in late 2019. The second-semester Observatori, published on Monday and drawing from 794 residents surveyed between 4 and 20 November, places traffic congestion second at 19%—down two points—followed by low salaries at 18.2%, immigration at 13.4% (nearly double the previous semester's level), and infrastructure issues such as urban expansion or road improvements at 13%.

Direct personal impact has hit a record high, with 42.3% of respondents—four in ten—reporting that housing problems affect their daily lives, up two points from 40.4% last semester. Among the 273 who cited direct effects, 120 highlighted rents exceeding salaries as the key issue. With 62% renting and 38% owning property, two-thirds of tenants describe disruptions to their routines.

Households now spend an average of €1,012.76 monthly on housing—whether rent or mortgage—up 5% from €963 a year earlier. Mortgages average €1,136, exceeding rentals at €991 overall. New leases under one year average €1,332.50, €547 more than the €785 for contracts over 10 years old. AR+I sociology head Joan Micó pointed to high variation in recent deals, with a standard deviation of €772 around the €1,332 average, reflecting wide price spreads.

Nearly half (46%) of respondents signed their current contract within three years, and only one-third have held theirs for over five. Around 18% are actively searching for new housing and show greater openness to areas beyond central parishes compared to two years ago.

Rental costs per square metre also vary by contract age: €16.70 for those under five years, €12.10 for five-to-10 years, and €13.60 for over 10 years. About 40% of rentals have contracts under five years, with post-pandemic hikes driving recent increases. These figures are indicative, as the survey may not fully represent market composition; older leases often involve larger, central units shielded by the 2019 freeze, due to expire in about a year.

In a related development, the International Monetary Fund (IMF) warned in its report *Housing Affordability in Andorra* that the housing crisis now constrains economic growth. It cites a structural mismatch between supply and demand for affordable rentals—dominant since around 65% of households rented in 2019, far above the European average. Low-income renters face acute strain, with over 40% in the lowest income bracket devoting more than 40% of earnings to housing. Recent construction has focused on high-end units, limiting affordable supply and hindering hiring in retail, hospitality, and tourism. The IMF urges comprehensive policies, including mobilizing vacant homes, expanding social housing, and incentivizing private-sector rentals, while cautioning that rent caps provide only temporary relief at the cost of market fluidity.

The findings underscore growing pressures as the rental freeze approaches its 2025 end.