- In Tallinn, the HAI stayed almost unchanged (-0.1 point) at 151.9 in the first quarter of 2019, compared with the first quarter of 2018, as net wage growth was slightly slower than an increase in apartment prices and interest rates.
- In Riga, the HAI decreased by 6.4 points to 177.7 as robust net wage growth did not outweigh rapid apartment price growth and rising interest rates. For new-project and renovated apartments, the HAI decreased by 3.3 points to 123.1.
- In Vilnius, the HAI improved by 8 points to 141.2, thanks to a very strong net wage growth outpacing both apartment price and interest rate growth.
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.