The housing affordability index (HAI) increased to 159.9 in Tallinn, 183.5 in Riga, and 129.4 in Vilnius.
In Tallinn, affordability increased by 0.2 point in the second quarter of 2017 compared with the same period in 2016, as wage growth gained strength while apartment price growth moderated.
In Riga, the HAI rose by 11.7 points, supported by robust wage growth and an ongoing decrease in interest rates.
In Vilnius, the HAI improved by 1.4 points due to very rapid wage growth, which exceeded apartment price growth.
The time needed to save for a down payment decreased in all three capitals – by almost one week in Tallinn to 27.4 months, a couple of days in Riga to 23.4 months, and over three weeks in Vilnius to 36.2 months.
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.
