The housing affordability index increased to 159.6 in Tallinn and 171.3 in Riga, but decreased to 128.1 in Vilnius
- In Tallinn, affordability rose by 8.3 points in the second quarter this year compared with the same period in 2015, due to a rapid rise in net wages and modest apartment price growth.
- In Riga, the HAI increased by 19 points, mainly due to a 6.9% drop in apartment prices.
- In Vilnius, the HAI declined by 5.2 points because apartment price growth outpaced wage growth.
- The time needed to save for a down payment decreased by 1 month and 2 weeks in Tallinn, to 27.6 months, and by 2 months and 3 weeks in Riga, to 23.6 months; it increased by 1 month and 1 week, to 37.0 in Vilnius.
The housing affordability index (HAI) is calculated for a family whose income is equal to 1.5 of average net wages with an average-sized apartment of 55 square meters. The HAI is 100 when households use 30% of their net wages for mortgage costs. When the HAI is at least 100, households can afford their housing, according to the established norm. The higher the number, the greater the affordability.
For more information about this report, please contact Ms. Vaiva Šečkutė, +370 610 08360, Vaiva.Seckute@swedbank.lt
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