First-quarter results show high housing affordability in all Baltic states despite virus-related restrictions and varying epidemiological situations at the beginning of the year. The first quarter saw affordability in Tallinn and Vilnius stay almost unchanged, while apartment affordability in Riga improved notably from a year ago.
A decrease in interest rates combined with wage growth surpassing average price growth ensured a rapid rise of affordability in Riga. In Tallinn and Vilnius, interest rates supported affordability despite the growth in apartment prices exceeding the increase in net wages.
Both wage and housing price growth is expected to remain strong, however, housing is unlikely to become more affordable this year.