Tallinn is collaborating with the private sector to find solutions for affordable housing policy. The city does not plan to build houses itself. The analysis will help understand what is needed for housing policy. The city will gain insight into what types of housing exist in Tallinn, where they are located, and their condition.
The analysis will provide recommendations on what the city can do itself and what state institutions can do. It is important to choose the right measures that suit Tallinn. For example, buildings can be renovated, and energy efficiency can be improved. The city is also accelerating planning processes.
The city is convening a council to discuss which solutions are suitable for Tallinn. The city is focusing on land policy. For example, developers will receive incentives if they build affordable apartments. Apartments must be affordable not only initially but also later.
Tallinn can build buildings on city land in collaboration with the private sector. This can also help agree on pricing policy. Real estate expert Tõnu Toompark says that all measures have downsides. For example, it is not good if the city starts building apartments itself. This could create problems.
Building apartments at affordable prices is important. For example, the rent should not exceed 40% of income. When buying, the price should be around three years' salary. Tallinn hopes that the housing policy plan will be ready by autumn.
In future areas, the city must build more large apartments. Currently, there are many small apartments that are not suitable for large families. The city should build apartments in different areas to avoid concentration.
A real estate expert believes that the current real estate market does not meet people's expectations. People want luxurious apartments, but the average apartment is a two-room apartment in Mustamäe. Accelerating planning processes is the only solution that can help lower real estate prices.