Why doesn't anyone want to work in Vilnius? Because the cost of housing is high compared to salaries

 "" The income from renting a home is about 5% on average. That is, if the money costs (bank interest margin - Delphi) 2%, the landlord has a significant difference in his pocket.

 If people have no money for the down payment or often change homes and are not ready to make a permanent purchase yet, they pay the landlord that 5%, even though there is a bank offer for 2% nearby. Buying is so active because there are those who buy for investment and those who buy for themselves.” 

Currently, in Vilnius, where the rental market is the largest, the most popular 1-2 room apartments can be rented from 300 Eur for an older building, better equipped apartments can cost 450 Eur per month. 

When it comes to new construction, prices start at 450-500 Eur and more, depending on various factors: the area, the condition of the installation, and so on. 

Economist Ž. Mauricas emphasizes that rental prices in the capital should not be surprising, because Vilnius, like many other EU capitals, is an expensive city. 

"For example, according to EU calculations, the rental price of a two-room apartment in Vilnius is about 800 euros, one room - 600 euros, when the average salary in Vilnius is about 1100 euros. 

If the salary is even lower, then you already need to get creative: look for smaller apartments, rent housing in co-living projects, etc. But such a trend is in all EU capitals, Vilnius prices have become practically the same as in Riga and Tallinn, similar to the rental prices in Warsaw and Bratislava. And it is really a challenge to live in the capital if the income is low,” - the economist emphasizes. 

Real estate purchase and sale prices are not lagging behind either, housing is becoming more and more difficult to afford all over the Western world, Lithuania is no exception. Ž. Mauricas emphasizes that historically in the West 90 sq. m of housing had to be obtained using 5 years of wage savings. There are now no such indicators in many EU capitals. 

"You have to work in Vilnius for 12 years to buy a home. 

In Berlin, there will even be a referendum on whether to expropriate housing from companies that rent houses,” - says the economist. The interlocutor warns that the growth of both real estate rental and purchase and sale prices in Vilnius must stop, otherwise we  face considerable difficulties. "If we raise housing prices to much higher numbers, we lost that competitive advantage over other capitals. 

If housing prices, rental prices are very high, workers choose other states. Also, Lithuanian entrepreneurs, if it is too expensive for their employees in Vilnius, they establish their businesses in other cities,” - emphasizes Ž. Mauricas."