Riga Has Most Affordable Housing in Baltics - Swedbank
RIGA, March 13 (LETA) - Housing affordability improved in all three Baltic capitals in 2018, with Riga leading Tallinn and Vilnius by housing affordability, according to Swedbank's latest Baltic Housing Affordability Index (HAI).
With income growing and housing affordability improving, the share of Latvians who can afford to buy a home in the next two years increased by 2 percentage points last year.
In 2018, the HAI improved considerably in Riga, including for new-project and renovated apartments, though the affordability level is lower for these apartments. Rapid average net wage growth, which outpaced the average apartment transaction price growth, was the defining factor behind higher affordability.
The tightening labor market, labor tax reform, and minimum wage hike were the main reasons explaining the rapid growth. A minor decrease in mortgage...
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