The Big Squeeze: Lithuanians Living in Smaller Homes as Apartment Sizes Shrink
Lithuanians are experiencing a trend of shrinking living spaces, with average per capita living area below the EU average. Experts warn that the popularity of small apartments is pushing larger families to suburbs, leading to infrastructure and quality-of-life challenges.
According to Eurostat data, Lithuanians are living in increasingly smaller homes, and the average living space per person is below the European Union average. Real estate developers say this trend has been visible for decades, driven by affordability concerns and changing demographics. However, economists warn that the growing popularity of smaller apartments is pushing larger families to the suburbs, creating new challenges related to infrastructure, transportation, and quality of life.
In a newly built residential development in Vilnius, most apartments measure around 40 square meters. Despite their limited size, sales representatives say such units are among the most sought-after and sell out the fastest. Real estate brokers and developers acknowledge that apartments in new housing projects have been steadily shrinking. According to Marius Čiulada of the real estate agency Ober-Haus, the average apartment size was about 64 square meters in 2000 but has now fallen to around 50 square meters. Most new developments consist of one- and two-bedroom apartments, while even three-bedroom units often measure only about 57 square meters.
Šarūnas Tarutis, director of real estate development company Citus, said rising urban housing costs are forcing buyers to make do with less space. He noted that this is a global trend: people continue moving to cities, housing prices rise, and affordability becomes the primary consideration, with space, comfort, and aesthetics becoming secondary priorities. According to Eurostat, the average Lithuanian has access to slightly less living space than the average EU resident—about one and a half rooms—while some households still struggle to secure comfortable living conditions.
Developers say the market reflects a new reality. In many new projects, only about 5% of apartments are designed with four rooms, while three-room units account for roughly one-quarter or less of total supply. The remainder consists of two-room apartments or even smaller units, including layouts with sleeping areas separated by alcoves rather than fully enclosed bedrooms. Industry representatives say demographic changes are also driving demand: more people live alone and can afford their own apartment.
For families with more than one child, shrinking apartment sizes can present significant challenges. Tarutis noted that sales processes often begin with investors, leaving larger families with few options on the market. He rejected criticism that developers are maximizing profits by fitting as many apartments as possible into a single building, arguing that housing design is adapting to changing lifestyles.
Economist Žygimantas Mauricas, chief economist at Luminor Bank, warned that smaller apartments may be easier to afford and finance through mortgages, but the long-term consequences could be substantial for urban development, demographics, and overall quality of life. In some cases, living rooms have become so compact that there is not enough space for a dining table. If current trends continue, Lithuania could follow the development pattern seen in the United States and Australia, where dense urban centers feature increasingly expensive high-rise housing with limited space, while many families relocate to suburban areas lacking sufficient infrastructure, schools, and public services. This shift could lead to more time spent driving and increased traffic congestion.
