The article explores the current state of the housing market in Lithuania, which appears stable at first glance with a low ratio of housing loans to GDP and nearly no non-performing loans. However, the pressure is mounting due to affordability issues, especially in major cities where housing is 2-3 times less affordable compared to rural areas. Young families are facing challenges, as accumulating a down payment can take up to 10 years. The past decade has seen a 60% increase in housing prices in Lithuania, the fastest growth in the Eurozone, indicating a widening gap between housing prices and income growth.

Despite these issues, Lithuania boasts one of the highest rates of homeownership in Europe, with approximately 89% of its population living in owned homes. Conversely, countries like Germany, Switzerland, Austria, Denmark, France, and Sweden have a significant portion of their populations living in rented accommodation. This stark contrast raises questions about the viability of the current housing model in Lithuania, particularly as the affordability crisis continues to deepen.

The article suggests a discussion on the need for municipal housing as a potential solution to address the growing disparities in housing access. With the structural tensions in the housing market, coupled with demographic trends favoring homeownership, it is crucial for policymakers to consider new strategies to ensure equitable access to affordable housing for all demographics, especially the youth and low-income families who are most affected by these trends.