Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 18/02/2021
Author Alfredas LAURINAVIČIUS, et,al
Published By International Journal of Strategic Property Management
Edited By Saba Bilquis
Uncategorized

Impact of Housing Affordability and Other Socioeconomic Variables on Internal Migration in Lithuania

Impact of Housing Affordability and Other Socioeconomic Variables on Internal Migration in Lithuania

Interrelationships between housing affordability and other variables ...

The document titled “Impact of Housing Affordability and Other Socioeconomic Variables on Internal Migration in Lithuania” examines how housing affordability, wages, and unemployment influence internal migration patterns in Lithuania from 2005 to 2019. Through correlation-regression analysis, the study identifies significant relationships between these socioeconomic factors and migration trends.

Overview of Internal Migration in Lithuania

Internal migration in Lithuania has seen notable fluctuations, particularly influenced by economic conditions and housing market dynamics. The study highlights that a substantial number of residents have relocated within the country, with urban areas like Vilnius, Kaunas, and Klaipėda experiencing increased migration due to better employment opportunities and living conditions.

Key Variables Influencing Migration

Housing Affordability

Housing affordability is a crucial determinant of internal migration. The study defines housing affordability as the relationship between housing costs and household income. It finds that higher housing affordability correlates positively with increased internal migration to certain cities. This means that when housing is more affordable, more people are likely to move into those areas.

Wages

Wages also play a significant role in migration decisions. The analysis indicates that higher average wages in a city attract more migrants. Individuals are more inclined to relocate to areas where they can earn better incomes, which often aligns with regions offering affordable housing options.

Unemployment Rate

Conversely, the unemployment rate has a negative impact on internal migration. The study reveals that higher unemployment rates in potential destination cities deter people from moving there. Individuals typically prefer to migrate to areas with lower unemployment rates, as this increases their chances of securing stable employment.

Methodology

The research employs correlation-regression analysis to explore the relationships between the selected socioeconomic variables and internal migration indicators. This method allows for a nuanced understanding of how changes in housing affordability, wages, and unemployment affect migration patterns over time. The analysis considers lagged effects, acknowledging that changes in these variables may not immediately influence migration decisions.

Findings

The findings indicate that housing affordability and wages together explain a significant portion (73-88%) of the variability in internal migration patterns in major Lithuanian cities. Specifically:

  • Positive Correlation: There is a strong positive correlation between housing affordability and the number of individuals migrating into a city.
  • Wage Influence: Higher wages are associated with increased migration flows into urban areas.
  • Negative Correlation with Unemployment: Higher unemployment rates in destination cities correlate with decreased migration, highlighting the importance of job availability in attracting residents.

Implications for Policy

The study underscores the importance of addressing housing affordability as a means to manage internal migration effectively. Policymakers are encouraged to consider the following implications:

  1. Affordable Housing Initiatives: Implementing policies that enhance housing affordability can facilitate population growth in urban areas, supporting economic development.
  2. Economic Development Strategies: Fostering job creation in regions with high unemployment can help balance internal migration flows and improve overall economic stability.
  3. Integrated Approaches: A comprehensive approach that combines housing policy with labor market strategies is essential for addressing the interconnected issues of migration and socioeconomic conditions.

Conclusion

In conclusion, the document highlights that housing affordability, wages, and unemployment significantly influence internal migration patterns in Lithuania. By understanding these relationships, policymakers can develop targeted strategies to enhance housing access and economic opportunities, ultimately shaping population movements within the country. The findings advocate for a strategic focus on improving housing conditions while simultaneously addressing labour market challenges to create balanced urban growth across Lithuania.

How migration affects housing affordability

Further reading: Housing Affordability: Theoretical Approaches and Practical Implementation
Impact of housing affordability and other socioeconomic variables on … journals.vilniustech
[PDF] Policy Actions for Affordable Housing in Lithuania | OECD oecd
[PDF] 3 Policies for quality housing at an affordable price in Lithuania oecd-ilibrary

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