Analytics, Baltic, Financial Services, Real Estate, Transport

The study analyzes the cost of living in Baltic capital cities for a family of two adults with two children that lives in an apartment of 70 square meters in area in an unrenovated apartment building, uses public transport, and does not eat out.

Such a family in Riga spends 41% of household income on food, housing costs, and transport. In Vilnius the proportion is 40%, while in Tallinn just 24%.

After deducting food, housing and transport costs, a family in Tallinn is left with EUR 1,560 a month, compared to EUR 840 in Riga and EUR 774 in Vilnius.

The differences are mostly due to different income levels in the Baltic capitals. An average household in Riga has an income of EUR 1,425 a month, in Vilnius EUR 1,229 a month, while in Tallinn – EUR 2,053 a month, explains Swedbank Institute of Finances expert Evija Kropa.

Families in Latvia have to pay the most for food – EUR 320 a month, compared to EUR 311 in Estonia and EUR 310 in Lithuania. In Tallinn, 15% of household income is spent on food, in Riga the proportion is 22% and in Vilnius 24%.

Housing costs in Riga on the average make up 12% of households' income. Renting a home is the most expensive, claiming 36% of households' income, while families that live in homes bought on mortgage have to allot 27% of their income to cover housing costs.

Compared to Tallinn and Vilnius, the cost of public transport in Riga is the highest. A Riga family spends EUR 100, or 7% of household income, on public transport every month. In Vilnius the respective figures are EUR 64 or 5%, while public transport in Tallinn is free of charge.