Housing affordability and quality are pressing challenges in Latvia. While Latvian households spend, on average, less on housing than their OECD peers, many are stuck in poor quality housing. Residential investment has stagnated since 2008, and the housing stock – much of which was built during the Soviet era – has been insufficiently maintained. In the face of these challenges, public support for housing is limited, with a large share of households who are too rich to be eligible for benefits and social housing, yet too poor to qualify for a commercial mortgage. Meanwhile, an underdeveloped rental market further limits affordable housing alternatives.

This study builds on the extensive work conducted by the OECD on housing and economic development to help Latvia address some of these challenges.