It is important for Baltic people to live in their own property, and a quarter would prefer not to move house during their lifetime. According to a survey conducted by Luminor Bank, people in Latvia and Lithuania would prefer to change their place of residence as little as possible, while people in Estonia are more flexible when it comes to changing their home.
More than 80% of Baltic people consider it important to live in their own property, especially Estonians, who gave this answer 86% of the time. Living in one’s own home is valued more highly as the age of the respondents increases. However, in the 18-29 age group, living in one’s own home seems to be less important to Latvian respondents than in neighbouring countries; only 59% of young people in Latvia, compared to 68% in Estonia and 70% in Lithuania indicated living in their own home as important.
“When planning to buy their first home, people often lack the knowledge to make a well-considered and financially viable decision about buying a property, for example, they dream of a private house, but it may turn out that they do not have enough money for it. Our survey also shows that some people think they should buy their first home for life, while around one in ten people say that unfortunately they cannot afford to buy their first home at the moment. This is the case most among younger people in Latvia, where a third of respondents say this. As age, income and savings increase, the number of respondents who cannot afford their own home also decreases sharply,”
saysKaspars Sausais, Head of Housing loans of Luminor.
Almost half of the population in Latvia and Lithuania would live in the same property all their lives or change their place of residence only once, while in Estonia less than a third of respondents gave this answer. Estonian nationals are more likely than Latvian and Lithuanian nationals to change their place of residence two, three or countless times if the need arises. Slightly more than a third of Latvians and Lithuanians are in favour of changing their place of residence more often, compared to half of Estonians.
“Changing residence can bring various inconveniences associated with moving, possibly changing schools for children or a longer commute to work, but it can also bring many positive changes: fresher air if moving to a place outside a big city, or more education and job opportunities if choosing to live in a city. The most important thing is to define your wants and needs, as well as your financial possibilities, before deciding to move, and try to find a property that best suits them. If the existing home no longer provides a comfortable life, it is essential to look for solutions to make it suitable for that stage of life, even if the mortgage on the existing home is still outstanding. Perhaps in consultation with the bank’s loan specialist, a solution can be found together. There are certainly situations where a change of residence can also bring financial benefits, for example in situations where children have started living independently and the existing residence has become too spacious,”
According to the survey, people living in the Baltic capitals are more likely to change their place of residence, while those living in rural areas prefer not to move.
* The Luminor Bank survey was conducted in April 2022 in cooperation with the research agency Norstat Latvia, surveying more than 1,000 respondents aged 18-74 in each of the Baltic States.
Head of Public Relations at Luminor
Phone: +371 29215409