08.12.2025
A recent Norstat survey shows that although the desire of young people in Estonia to buy their own home is still very strong, as many as 66% of those aged 20–30 consider raising money for the down payment to be the biggest obstacle. According to Catlin Vatsel, Head of Private Finance at LHV, the actual readiness of young people to buy a home depends on how early and how systematically they are involved in saving for the down payment.
The survey by Norstat shows that people in Estonia have faith in real estate: A total of 89% of young adults between the ages of 20 and 30 plan to buy a home in the next 10 years. The main obstacle identified by 66% of young people is saving up for the self-financing of the home, which they estimate is mostly in the range of EUR 10,000–20,000.
‘However, accumulating the amount needed for the down payment on your first home requires consistent saving and often combining several methods,’ says Catlin Vatsel, Head of Private Finance at LHV. The study by Norstat shows that the vast majority of young people (75%) plan to save for the down payment by setting money aside on a monthly basis. In addition, 32% plan to rely on investing, 28% on extra work, and 26% on family support. Only 4% of young people plan to use the second pension pillar, which, according to Vatsel, may indicate both financial awareness and the fact that young people have not yet accumulated much money in it.
The ability to save varies significantly among young people. A third are willing to set aside more than EUR 300 per month for a down payment, but 17% can save up to EUR 100, 24% between EUR 100–200, and 22% between EUR 200–300. The survey also highlights a clear difference between Estonian-speaking and Russian-speaking young people, which reflects wider wealth inequality and directly affects how quickly a down payment can be raised.
According to Vatsel, it is actually possible for most young people to save up for home self-financing if they aim for it early on. ‘Saving up for the down payment on an apartment requires consistent saving. It is worth thinking about the first home well before you actually start planning to buy. The desire to buy a home may arise unexpectedly early and therefore it makes sense to start saving already today so that by the time the purchase of your home becomes real, at least part of the required down payment would be available,’ Vatsel explained, adding that today banks offer different solutions for keeping your costs under control.
The head of Private Finance at LHV welcomed the wish of nearly a third of young people to invest for the down payment of their home, which proves the growing financial wisdom of young people. ‘The strong motivation and willingness of young people to work towards their goal, which in turn increases the likelihood of buying a home even in a more difficult economic situation, is clearly illustrated by the fact that 28% are willing to do extra work to meet the home down payment.’
According to Vatsel, the fact that more than a quarter of young people rely on the support of their parents when buying a home shows an increase in the wealth of the society. ‘Cross-generational wealth has emerged, which the parents pass on to the children by taking out a home loan together with their young adult child, helping to cover self-financing or buying them their first apartment.’
Vatsel stresses that parents have different possibilities and the lack of financial resources does not mean that parents cannot support their child when buying their first home. ‘The role of parents in the journey of buying their children’s first home may be greater than it seems at first glance. Parents can set an example and guide their children to save money early and start collecting for their intended purpose,’ she explained.
‘The results of the survey show that young people are motivated to work towards a long-term goal,’ Vatsel admits and adds that since the hardest part is saving the down payment, the supporting role of families as well as a conscious approach to saving and investing becomes increasingly important.
The survey was carried out by Norstat at the end of October and the beginning of November, commissioned by LHV.
All news