Student rental supply falls as prices rise in Estonia

Estonia’s rental market has become more active ahead of the new academic year, but apartments suitable for students are less available and more expensive than a year ago, ERR reported.

With just over a week until the start of the academic year, thousands of students have returned to the rental market. Panel-block apartments and smaller wooden houses are in the highest demand.

Apartment listings are down by an average of about 10 percent this year. Uus Maa, a real estate agency, has also observed a similar trend.

“While demand was of roughly the same magnitude, supply was seven percent lower this year compared with 2025,” said Karl-Villiam Vaserik, a broker at Uus Maa Pro. He said the missing apartments had most likely been shifted to short-term rentals.

Monthly rent for an average one- or two-room apartment is currently about 400 to 650 euros, depending on its condition and location.

“For a student, 400 to 650 euros is a significant sum, especially in the first years when the student is not working. It is not easy to take that money from parents’ wallets either,” said Lenno Uusküla, chief economist at Luminor bank. Food and other expenses must also be added.

Uusküla attributed the higher rents to limited supply and improved consumer confidence. He also noted that people earning more than the median wage had more money available after income tax changes at the start of the year.

In Tallinn, the most sought-after areas among students are the city centre, North Tallinn and Mustamäe, where universities are located nearby. A cheaper alternative is student accommodation.

The least expensive option costs 161 euros per month for a bed in a shared room, with all additional costs included, said Jaak Kääp, head of the Tallinn University of Technology Student Village.

The era of run-down dormitories is over, Kääp said. One of the university’s residences was recently renovated. Because the building is newly refurbished, it is also the most expensive option, costing 440 euros per month with all additional costs included.

Places there filled quickly, and 150 students remain on the waiting list. “In previous years, we practically had no one waiting. This year, it suddenly happened,” Kääp said.

Students who are currently without accommodation may see more options enter the rental market in a few months, when prices are also expected to fall slightly.