This statement was made by Latvian Minister of Economy Arvils Aseradens. According to him, the rapidly growing demand for housing, as well as a weak purchasing power represent serious problems that limit the affordability of real estate in Latvian regions.
A survey among the mayors of the largest cities shows that at least 1,000 apartments are required in Valmiera, at least 200 - in Cesis and Smiltene and 400 in Sigulda. However, in March 2018, there were only six rental ads in Valmiera and four in Sigulda. According to the minister, the lack of housing also limits the influx of new labor, The Baltic Course reports.
Despite the high demand, only about 20% of families are able to buy housing provided that their total expenditure on real estate should not exceed 30% of the total monthly income.
