Analytics, Financial Services, Latvia, Real Estate, Society

Despite that, compared to 2013, housing expenditure has risen by 3%, growth of household disposable income was more rapid (increase of 10.6% per household member monthly in 2013).

Total housing maintenance expenditure on average per month and its share in household disposable income in 2005-2014

Data source: Central Statistical Bureau of Latvia

In 2014, only 14.5% of surveyed households affirmed that housing maintenance expenditure is not a burden for them. But 40% of households indicated that housing expenditure is a heavy burden to their budget and 45.5% – that it is a slight burden.

However, in recent years households feel housing expenditure burden less and less. Since 2013 share of households which indicated that housing expenditure is a heavy burden for them has dropped by 7.6%age points. More and more households indicate that housing expenditure is a slight burden to them (from 40% in 2013 to 45.5% in 2014) or is not a burden at all (from 12.4% in 2013 to 14.5% in 2014).

Breakdown of the answers to the question "Does total housing expenditure arise financial difficulties to you household?", In 2005 – 2014 (as %)

In 2014 coverage of housing expenditure was a heavy burden to a large part of single-parent families (55.1%) and households consisting of a couple with three and more children (46.1%).

56.3% of households with elderly people (65 years and more) indicated that housing expenditure is a heavy burden for them. Moreover, these households spent more than one third (33.4%) of their disposable income to cover the hosing maintenance expenditure, which is twice more (in percentage) than average in the country (16.4%).At the same time there were arrears for utilities among 9.9% of households with persons aged 65 years and more who live alone (11.7% – in 2013).

Housing expenditure burden in different types of households in 2014 (in %)

Share of households that were in arrears for utilities because of the lack of money² has reduced slightly (from 19.4% in 2013 to 18.2% in 2014).

The majority of persons with arrears for utilities was among households consisting of a couple with three and more children (35.9%) and among households consisting of one adult with children (35.7%).

Data on housing maintenance expenditure is survey on income and living conditions conducted by CSB in 2014 (EU-SILC – EU Statistics on Income and Living Conditions). The survey covered 6.1 thousand households and 12 thousand respondents aged 16 years and over were interviewed. Data on 2015 will be compiled this year from March till the end of June.

Methodological explanations

¹ In survey on income and living conditions the amount of housing maintenance expenditure includes following expenditure:

·         rent for housing (only for tenants);

·         housing property tax (only for owners);

·         heating, electricity, water supply and sewerage, waste disposal, etc. payments connected with housing;

·         expenditure for current housing repair and regular maintenance;

·         expenditure on housing (not property) insurance (if such are paid).

² Utilities include payments for water, gas, electricity, heat and collection of waste. Expenses of the household covered to provide extra comfort (e.g. subscription fee for TV, Internet, telephone, alarm, etc.) are not included.