Ramon Rask, a partner at the law firm RASK, addresses the growing housing crisis in Estonia, stating that the core issue lies not in demand, but rather in the insufficient supply of affordable rental properties. This crisis is not confined to Europe's major cities; it's increasingly affecting Estonia, illustrating that the need for affordable housing solutions is becoming urgent.

The European Union plans to increase housing supply and allocate public funds for rental housing while implementing measures to limit short-term rentals. Starting in 2026, Estonia will be required to collect data on short-term rentals as part of a new EU regulation aimed at improving residential property availability. Rask emphasizes that the lack of affordable housing has resulted in a 53% increase in property prices and a 21% rise in rent prices over the past decade in Europe, indicating a significant affordability gap that needs to be addressed.

As Estonia prepares for the implementation of these new measures, the impact on the local housing market could be profound. By focusing on enhancing supply, promoting affordable housing, and regulating the short-term rental market, the government aims to create a more balanced housing ecosystem that meets the needs of its residents. Rask's insights highlight the necessity for immediate action to ensure that housing remains accessible for all, stressing a shift in policy towards long-term solutions rather than merely reacting to the market dynamics.