Housing Affordability Index for Baltics - September 2017
The housing affordability index improved in all three Baltic capitals in the second quarter of 2017

The housing affordability index (HAI) increased to 159.9 in Tallinn, 183.5 in Riga, and 129.4 in Vilnius.  

• In Tallinn, affordability increased by 0.2 point in the second quarter of 2017 compared with the same period in 2016, as wage growth gained strength while apartment price growth moderated. 

• In Riga, the HAI rose by 11.7 points, supported by robust wage growth and an ongoing decrease in interest rates. 

• In Vilnius, the HAI improved by 1.4 points due to very rapid wage growth, which exceeded apartment price growth. 

• The time needed to save for a down payment decreased in all three capitals – by almost one week in Tallinn to 27.4 months, a couple of days in Riga to 23.4 months, and over three weeks in Vilnius to 36.2 months.  

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.

PDF Baltic Housing Affordability Index Q2 2017

For more information please contact Ms. Linda Vildava,                                                                                 +371 67444213, linda.vildava@swedbank.lv 

________________________________________

This email is sent through the web-based distribution system of Swedbank Macro Research. As a subscriber you can change your settings regarding what publications you will receive by clicking “Change your settings”. You can also unsubscribe by clicking "Unsubscribe".   

Subscribe!
This letter is distributed by Swedbank in cooperation with Brightly. The letter is personal.
You need Adobe Acrobat Reader to show PDF documents. (download here)