Housing Affordability Index for Baltics - December 2016
The housing affordability index (HAI) increased to 162.5 in Riga, but decreased to 145.9 in Tallinn and to 124.3 in Vilnius
  • In Tallinn, affordability decreased by 0.8 point in the third quarter this year compared with the same period in 2015, due to a slight increase in interest rates as price growth was equal to wage growth.

  • In Riga, the HAI increased by 2.3 points as meagre wage growth was compensated for by 15-basis-points lower interest rates

  • In Vilnius, the HAI declined by 6.4 points because apartment price growth continued to outpace wage growth.

  • The time needed to save for a down payment almost did not change in Tallinn and Riga, where it was at 29.7 months and 25.0 months, respectively; it increased by 1 month and 3 weeks, to 38.1, 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.


PDF Housing Affordability Index for Baltics - December 2016

 For more information about this report, please contact Ms. Vaiva Šečkutė, +370 610 08360, Vaiva.Seckute@swedbank.lt

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