Apartment rents will go down, economist says

DELFI / Kiril Čachovskij

“Neither people’s income, nor demand for housing grew that much,” Grajauskas told DELFI, commenting on apartment rent prices that went up by almost 20% last year. Therefore adjustments in the market should bring them down again, he believes.

Average income grew 5% last year and is expected to go up 6% this year, according to Grajauskas. Rents should grow at a similar pace.

“If they [housing rents] grew 20% last year, they should edge down at least 5 to 10%, so that they are back at a normal level,” Grajauskas says.

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