Tallinn

1. Tallinn's Medieval Old Town: Tallinn boasts one of the best-preserved medieval old towns in Europe, which is a UNESCO World Heritage site. It features stunning architecture, cobblestone streets, and a rich history that dates back to the 13th century, often overlooked by those who focus on the modern side of the city. 2. Digital Society: Tallinn is known for its advanced digital society and e-governance initiatives. The city was one of the first to offer e-residency, allowing global citizens to start and manage businesses online from anywhere in the world, making it a hub for digital nomads. 3. Vibrant Startup Scene: Beyond its historical charm, Tallinn has a burgeoning startup ecosystem, often referred to as "Silicon Valley of the Baltic." It hosts numerous tech events and has produced successful startups like TransferWise (now Wise) and Bolt, attracting young entrepreneurs and tech enthusiasts.

Tallinn’s housing market in 2025 shows **moderate but steady price growth**, particularly for apartments, which have seen a 7–11% year-on-year increase. The **average price per square meter to buy an apartment** in Tallinn is currently about **€3,084**, with new apartments in central districts like Kesklinn rising to **€4,205 per sqm**. Rental markets are robust, with **median rents for a two-bedroom apartment typically ranging from €595 to €919 per month**. For prime locations and larger units, monthly rents can climb to **€1,395–€1,900**. This reflects a typical median **rental price per sqm of around €13–€17**. On tenure, Estonia overall has a **high homeownership rate**, traditionally above 80%. In Tallinn, **home rental is more common than the national average**, but homeownership still predominates, with estimated **25–27% of residents renting and around 73–75% owning** their homes. **Publicly owned housing** in Tallinn is limited and targeted. The city provides **municipal and social housing mainly as temporary support for low-income residents and essential workers**, but this makes up **only a small fraction of the total housing stock**. Public housing is not synonymous with social housing; social housing is a subset offered on a strict needs assessment, generally for up to three years, and aims to address acute housing insecurity, while broader municipal housing may include other essential worker groups. In summary, **Tallinn’s market is competitive and increasingly expensive**, with homeownership still prevailing, limited public/social housing, and distinct roles for municipal versus social housing provision.

Tallinn's housing crisis is characterized by steadily rising property prices, particularly for apartments, which have seen year-on-year increases of 7–11%. The average price per square meter is approximately €3,084, reaching €4,205 in central areas. Rental costs are also high, with median two-bedroom apartment rents ranging from €595 to €919 per month, and up to €1,900 for prime locations. The housing market primarily consists of homeowners, with about 73–75% of residents owning their homes, while around 25–27% rent. However, rental housing is more common in Tallinn compared to the national average. Those most affected by the crisis include low-income families and young people, who face significant barriers to homeownership due to high prices and restrictive lending conditions. Housing expenses exceed 40% of monthly income for about 14% of Tallinn residents, making it difficult for many to afford living in the city. This situation is exacerbated by the lack of affordable housing options, leading some families to seek housing outside Tallinn or settle for inadequate living conditions.

Tallinn's city administration is actively addressing affordable and sustainable housing through several initiatives. The city aims to build 1,000 new affordable rental apartments by 2025, targeting middle-income families who struggle with market rates. Energy efficiency renovations are encouraged with subsidies, reducing utility costs for residents. A land bank policy is in place to acquire strategic land for future affordable housing projects. Cooperative housing is supported through consultations and workshops, with preferential land leases for such projects. The city is also considering rent control measures to prevent gentrification and promote sustainable urban planning by encouraging higher-density housing near public transportation hubs. Additionally, the SOFTacademy Project focuses on neighborhood-level circular renovations of large apartment buildings, emphasizing resource efficiency and sustainability. Recently, Tallinn has been working on a plan to create more affordable housing by collaborating with the private sector, aiming to develop a comprehensive strategy by autumn. This includes speeding up the planning process and implementing active land policies to incentivize developers to build affordable units.

Housing cooperatives, or korteriühistud, play a central role in Tallinn’s housing landscape, primarily by managing and maintaining the city’s apartment buildings. More than 2,500 housing cooperatives exist in Tallinn, making this the dominant model for collective management: over 80% of the city’s apartments are administratively run by such cooperatives. However, their main function is building management—collective ownership and decision-making about maintenance, utilities, and renovations—rather than creating new affordable housing or acting as providers of new cooperative-built apartments. Interest in expanding the cooperative housing sector beyond building management has grown in recent years, spurred by rising market prices and growing affordability concerns. The city administration now supports cooperative initiatives with workshops, preferential municipal land leases, and is preparing a revolving loan fund to help start new cooperatives. While this signals a policy shift toward encouraging cooperative-led housing development, genuinely new, non-profit cooperative rental homes are still rare. Tallinn’s current housing strategy highlights energy-efficient renovations, building new affordable rental apartments, and fostering neighborhood development through programs like the SOFTacademy. Cooperative housing is recognized as a potential tool within these broader policies, although its share of all new housing remains very small. There are no precise statistics separating cooperatively developed housing from the much larger stock managed by housing associations, but administrative cooperatives are present in the vast majority of apartment buildings across the city.