Estonia: fewer rental apartments, higher prices as new school year nears
As Estonia's new academic year approaches, the number of apartments available for rent has dropped by nearly 10 percent while prices have climbed. Students are increasingly turning to dormitories as a cheaper alternative.
With just over a week left before the new academic year begins in Estonia, thousands of students have once again stirred up the rental market, with apartments in prefabricated and small wooden buildings especially sought after.
However, roughly 10 percent fewer apartments are on offer this year compared to last. Real estate agency Uus Maa reports a similar trend: while demand has stayed roughly steady, supply is down 7 percent from 2025. Agent Karl-Villiam Vaserik suggested that a share of landlords have likely shifted their units to short-term rentals instead.
Prices climb
The imbalance has pushed rents higher. A one- or two-room apartment currently rents for between €400 and €650 a month, depending on condition and location. Luminor chief economist Lenno Uusküla noted that such sums are a heavy burden for students, particularly in their early years before they start working, forcing families to cover rent on top of food and other costs. He said landlords are raising prices simply because limited supply allows them to, while consumer confidence in Estonia has also improved, partly due to income tax changes that took effect earlier this year.
Among students, the most sought-after areas of Tallinn are the city center, Põhja-Tallinn and Mustamäe, given their proximity to universities.
Dormitories as an alternative
A cheaper option remains available through student housing. Jaak Kääp, head of Tallinn University of Technology's student village, said the least expensive option — a bed in a shared double room with everything included — costs €161 a month. A newer dormitory at the university, however, costs €440 a month including extra costs, and currently has 150 students on its waiting list, compared to virtually none in previous years.
Officials expect the rental market to ease somewhat in the coming months, with more apartments becoming available and prices likely to soften slightly.
