Survey: Almost half of the Baltic population does not buy property due to insufficient income

Almost half of the residents of the Baltic States do not buy property because their income is not enough to take on credit obligations, as well as a part is unable to accumulate the first installment, Luminor Bank representatives said, referring to the bank’s survey data.

In Latvia, 41% of the surveyed population mentioned insufficient income as the main obstacle, while in Lithuania 44% and in Estonia 42% of the population indicated that there was a lack of funds for the first installment.

The survey data show that younger people, ie the population aged 25-34, have the greatest difficulty in accumulating the first installment for housing. At the same time, about a third mentioned that they had not made special savings for the first installment, while 16% of respondents in Latvia had saved money for two to three years, but 15% – for more than five years.

The third most frequently mentioned reason is uncertainty about the future. Residents of Latvia (25%) and Lithuania (22%) are most worried about it, but Estonians are the least concerned (17%).

The survey shows that a larger share of household income is spent on rent by Lithuanians, but the smallest by Estonians. The majority of Lithuanian respondents who rent a house spend 21-30% of their household income on rent, in Latvia – 11-20%, but in Estonia – less than 10%.

In turn, Estonians spend the largest proportion of their income on a loan payment for housing, while Lithuanians spend the least. The survey concludes that 11-20% of monthly income in Estonia is paid by 28% of respondents, in Latvia by 21%, but in Lithuania the majority of respondents (15%) spend less than 10% of income on it.

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About half of the respondents in the Baltics have admitted that the main negative aspects of housing rent are related to instability, which refers to the possible variability of rent (54%) and the term of rent (52%). Respondents in Latvia and Lithuania were equally worried that the landlord could terminate the contract or increase the rent at any time, while Estonians were worried about increasing the monthly payments and that renting a home is more expensive than buying in the long run.

The survey was conducted in September this year in cooperation with the research center “Norstat”, surveying more than 1,000 people aged 25 to 55 in each of the Baltic States.


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