Baltic Housing Affordability Index - December 2018
Housing affordability index improved in all three Baltic capitals in the third quarter of 2018

The housing affordability index (HAI) increased to 134.3 in Vilnius, 186.0 in Riga, and 154.3 in Tallinn. 

  • In Tallinn, the HAI rose by 5.8 points in the third quarter of 2018, compared with the same period in 2017, as rapid wage growth outweighed growing apartment prices and interest rates.
  • In Riga, the HAI improved by 8.7 points as wage growth surpassed apartment price growth.
  • In Vilnius, the HAI increased by 9.5 points as strong wage growth and a decrease in apartment prices compensated for rising mortgage interest rates.
  • The time needed to save for a down payment decreased by a month and a half in Tallinn, by a month in Riga, and by around four months in Vilnius, to 27.6, 22.9, and 33.3 months, respectively. 

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 index, the greater the affordability. 

PDF-Document Baltic Housing Affordability Index Q3 2018

For more information please contact Ms. Linda Vildava, +371 67444213, 


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 from this particular newsletter by clicking "Unsubscribe". Information on the Swedbank Principles of processing personal data can be found here.  

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)