In Ida-Viru County, Estonia, the renovation of apartment buildings is facing serious challenges due to high construction costs and a lack of competition within the local market. According to housing association accounts, the European Union subsidies meant to aid construction projects have inadvertently led to inflated costs, making it difficult for many communities to undertake necessary renovations.

Experts point to the weak competition in the region's construction market as a critical underlying factor contributing to these problems. The combination of high demand for renovation work driven by EU funding and limited contractor options is resulting in price hikes, leaving many local housing associations struggling to find affordable solutions.

This situation not only impacts the immediate residents of these apartment buildings but could also have broader implications for urban development and community sustainability in Ida-Viru County. Without effective intervention to improve competition and control costs, the ability for local authorities and residents to utilize EU funding effectively may be severely diminished, stalling vital renovations and potentially affecting overall living conditions in the area.