Housing Affordability Index for Baltics - December 2017
Housing affordability remains high in all three Baltic capitals in the third quarter of 2017

The housing affordability index (HAI) increased to 148.6 in Tallinn, 177.2 in Riga, and 124.8 in Vilnius.

  • In Tallinn, affordability increased by 2.9 point in the third quarter of 2017 compared with the same period in 2016, as apartment price growth moderated to a greater extent than wage growth. 
  • In Riga, the HAI rose by 4.7 points, as robust wage growth and a continuous decrease in interest rates offset rapid apartment price growth. 
  • In Vilnius, the HAI improved marginally by 0.5 points as very rapid wage growth outweighed apartment price growth and an increase in interest rates. 
  • The time needed to save for a down payment decreased by around three weeks in Tallinn and Vilnius to 29.0 and 37.2 months, respectively, while increased in Riga by two weeks to 24.1 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 Q3 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".    

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)