Policy Actions for Affordable Housing in Lithuania

image of Policy Actions for Affordable Housing in Lithuania

Many Lithuanian households struggle to afford good-quality housing. The housing stock is dominated by owner-occupied, multi-apartment buildings that are energy inefficient and face persistent quality gaps. While average household spending on housing is relatively low, house prices have been rising, and many households cannot afford to move to higher quality homes that better suit their needs. Lithuanian policy makers have stepped up support for housing in recent years, but more actions are needed. This report presents the main features of the Lithuanian housing market, highlights housing challenges that have been amplified by the current economic and geopolitical crises, and assesses current policies to address housing affordability and quality gaps. It proposes a series of recommendations to strengthen the supply of and access to affordable housing, and to support Lithuania’s commitment to make housing policy a priority.



Across the OECD, rising housing prices and insufficient investment in affordable and social housing in recent decades are colliding with a cost-of-living crisis and the enduring effects of the COVID‑19 pandemic. Affordable housing remains high on the policy agenda of many OECD countries, as households struggle to make ends meet and housing accounts for an outsized share of household budgets. In the OECD, over one‑third of low-income tenants spend more than 40% of their disposable income on housing. One in ten households lives in overcrowded conditions, and one in 20 lacks access to a flushing toilet. According to the latest OECD Risks That Matter survey, conducted in 2022, nearly half of respondents across 27 countries worry about being able to access adequate housing.


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