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
- 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
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 please contact Ms. Linda Vildava, +371 67444213, firstname.lastname@example.org
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