Abstract
This paper analyses housing market developments in the Baltic States using a price-rent (PR) adjusted version of the DiPasquale-Wheaton (DPW) model as a frame of reference. Relating housing markets in Estonia, Latvia and Lithuania to the boom, the bust and the recovery after the financial crisis in 2007/2008, the paper discusses the interrelations between the different parts of the housing market system. Transition involves structural shifts, and the links between rental housing, owner-occupied housing and the housing construction industry might differ in the Baltics compared to mature economies, differences originating especially on the supply side of housing markets. As the Baltics are integrating their economies with the EU, housing markets may also be affected by the integration process, a process that includes factors both on the financial side and on the real side of the economy.