The Estonian Climate Ministry is seeking to address the issue of affordable and quality rental housing by working alongside the European Investment Bank. Their plan focuses on supporting private sector developers to increase the availability of such housing, particularly in areas beyond the major urban centers of Harjumaa, Tartumaa, and Parnumaa. The ministry notes that although a significant portion of Estonia's population resides outside these regions, only a small fraction of new apartments are being built there.

To tackle this disparity, the ministry aims to identify the underlying reasons why property developers are hesitant to operate outside of the major cities. This involves engaging external experts to analyze the market failures that contribute to the lack of development in these areas. The ministry anticipates that after a year of investigation, they will propose specific solutions, which may include financial models, cash flow guarantees, and streamlined processes, as well as interventions in land policy to stimulate development.

Ultimately, this initiative represents a significant step towards addressing housing inequality in Estonia. By focusing on the needs of those living outside urban centers, the Climate Ministry hopes to create a more balanced distribution of housing resources, thereby improving the overall living conditions for many Estonians who feel overlooked in the current housing market.