Rental Market Assessment (Round 2) Moldova
This document presents an assessment of the rental market in Moldova, focusing on costs, characteristics, availability, and accessibility for refugee households, with data collected in January 2024. The assessment aims to support the provision of stable and adequate housing for refugees in Moldova. The study included two urban locations, Chișinău and Bălți, and two semi-urban locations, Ialoveni and Orhei. Data was gathered through surveys, interviews and focus groups with refugees, rental service providers, and other relevant stakeholders.
Introduction
This assessment provides insights into the dynamics of the rental market in Moldova, specifically examining the experiences of refugee households. The study focuses on rental costs, property characteristics, market availability, and accessibility issues, intending to facilitate secure housing solutions for refugees. The research was conducted in two urban and two semi-urban areas in Moldova. Data was gathered through a mix of quantitative and qualitative methods, including surveys, key informant interviews, and focus group discussions.
Methodology
The study included the same four locations as a previous round of assessment: the urban areas of Chișinău and Bălți, and the semi-urban areas of Ialoveni and Orhei. Data collection occurred between 31 October and 25 November 2023. The researchers used a purposive sampling method to identify refugee tenant households via referrals and at aid distribution points. Rental service providers were found through scouting locations, online message groups, and rental advertisement channels. The research team collected data from 193 refugee households and 39 rental service providers. The study also used data from the online rental platform 999.md from March to November 2023.
Costs, Characteristics, and Availability
The study analysed rental costs using both online advertisement data and information from refugee household surveys. The average number of listings on 999.md was 3,400 per month in Chișinău and 116 in Bălți, with very few or no listings in other localities5. There was an increase in average rental prices between October and November, with a more substantial increase in Chișinău compared to areas outside of the city. The average rent paid by refugee households remained largely unchanged between the first and second rounds of assessment, with an average of €239 in round one and €234 in round two.
- Most refugee households (66%) had been renting their current accommodation for six months or more8.
- The average price per room decreased from round 1 to round 2, and was generally higher in Chișinău than in other localities.
Refugee households in Chișinău paid less than the average advertised price on 999.md, while prices in other locations were more aligned.
- Most rental service providers (RSPs) were private owners leasing apartments (72%) or single rooms/shared spaces (21%).
- Deposits were requested by 41% of individual owners, while real estate agents typically always required a deposit12. Typical deposits covered the first and last month’s rent.
- The average deposit varied by location, ranging from €348 in Bălți to €653 in Ialoveni.
- The average monthly cost of utilities was €69, a decrease from round 1, and heating costs averaged €106.
Regarding the characteristics of the accommodations, most households reported their rental to be in good condition. The majority of accommodations were furnished with basic household essentials.
- Most households found their rental through recommendations (61%), while 26% used 999.md.
- Rental service providers mostly used 999.md (62%) in urban areas and recommendations in semi-urban areas.
The most common difficulties in finding accommodations were refugees being rejected as tenants (47%) and a scarcity of available accommodations (44%).
Accessibility
Most refugee households rely on cash assistance to pay rent19. 55% of households that reported income as a financial resource used 26-50% of their income on rent.
- Vulnerable groups were prevalent, with 37% of households having children and 17% having older people.
- 10% of households reported borrowing money or selling items to pay rent.
The majority of households with Temporary Protection (TP) reported that it had either no impact on their ability to obtain a rental or did not know because they had begun renting before receiving TP.
- Only a small number of households reported that TP helped them to secure a rental because it removed the need to obtain proof of residence.
- Most rental service providers also reported no changes in their willingness to rent to refugee tenants due to TP.
Accommodation Needs and Priorities
Most households with one to two members lived in one or two-room accommodations, while larger households more frequently lived in two rooms. The most important factors when searching for housing were condition (71%), price (68%), and location. When asked which factors they would compromise on, households were most willing to compromise on price, condition and location.
Security of Tenure in Rental Market
- 62% of individual owner RSPs used written contracts, although over half were not registered with the state. 29% used verbal contracts.
- 44% of households reported having a verbal contract, 37% a written contract, and 19% a registered contract.
Verbal agreements were reportedly due to owners not wanting to provide one or due to avoiding legal fees
- Most respondents were not afraid of eviction, and most frequently attributed the end of cash assistance for refugees as a reason for eviction.
- A large proportion of households reported they would not seek external support if there was a dispute with their RSP.
Relationship Dynamics in Rental Market
The most common motivation for RSPs to be landlords was economic benefit.
- Most households described their relationship with their RSP as ‘good’ (46%)39.
- Most households (56%) felt their accommodation was in a welcoming community, with semi-urban locations reporting the highest percentages.
- Most households (94%) had not felt discrimination in their neighbourhood.
- Some households with mobility disabilities reported discrimination.
- Increased housing prices due to the refugee influx and discontent from locals with financial assistance to refugees were reported.
Considerations for Actors of the Rental Market
Refugee focus groups suggested increasing aid, considering seasonal changes, the composition of families, and monitoring rental prices45…. Host community focus groups suggested communicating with landlords, basing aid on family composition, providing jobs for refugees and providing assistance to locals and refugees on equal terms47. For those with mobility disabilities, the study recommended adapting housing, providing financial aid and incentivising landlords to rent to those with disabilities.
For further reading:
Rental Market Assessment Moldova – UNHCR