According to calculations by Swedbank, residents of Vilnius with average incomes can currently afford apartments of about 64 square meters, with only a minor increase in affordability over the past quarter. In contrast, affordability in Klaipeda continues to improve, now allowing residents to afford nearly 94 square meters, making it the best among the major cities. In Kaunas, however, the rapid increase in property prices, significantly outpacing wage growth, has led to a decrease in affordability to over 87 square meters, although it remains better than in the capital city.

Economists predict that housing affordability will be negatively impacted this year due to skyrocketing property prices. The persistent demand for housing is contributing to these rising costs. Data from the Registrų Centras indicates that apartment prices in Kaunas surged by about 15% over the past year, nearly doubling the rate of wage growth. Meanwhile, in Vilnius and Klaipeda, wage increases have slightly exceeded the rise in housing prices. The expectation is that the trend of rising property prices outpacing wage increases will continue in Vilnius this year.

This situation presents a growing challenge for potential home buyers in Lithuania's key urban areas. As housing becomes less affordable, the market dynamics could lead to a scenario where more people are priced out of home ownership. The findings suggest that prospective buyers may need to adjust their expectations or explore alternative housing options as they navigate an increasingly challenging real estate landscape.