The newest Household Finance and Consumption Survey (HFCS) carried out by Eesti Pank and Statistics Estonia finds that between 2021 and 2024, the wealth of the average Estonian household increased by 16% in real terms. The volume of deposits as a share of wealth has decreased for families, but they now hold more in other financial assets, such as shares and investment fund units that earn a higher return over the longer term. The loan burden of families is smaller now, as is their financial fragility.

The HFCS has been carried out four times in Estonia, in 2013, 2017, 2021 and 2024. This is a very extensive survey carried out across the euro area, and therefore analysing and publishing the results takes time.  The long-term trend revealed by the surveys shows that over the years, Estonian families have gained substantially more wealth. The median household (the point where half the families have more assets and half have less) in 2013 had 43,300 euros of net assets, but that had increased to 103,300 euros by 2024. The net wealth of households is found by subtracting their liabilities from their assets.

The median amount of net wealth increased by 56% between the last two waves of the survey, which took place in 2021 and 2024. This was a nominal increase, but the period 2021–2022 was characterised by rapid price growth. Since 2021, the price level has risen substantially more than during the previous decade. Accounting for the rise in consumer prices, the real increase in median wealth in 2021–2024 was 16%.

Alongside the increase in the wealth of Estonian households, the structure of assets has also changed and now resembles the euro area average more closely. First, the share of financial assets has increased, growing from 10% to 20% in the 11 years from 2013. Second, households’ financial assets have become more diversified, as families have invested more boldly in riskier financial assets, such as shares or investment fund units, which can earn a higher return over the long term compared to bank deposits. Bank deposits were around 70% of all financial assets in earlier years, but the share of riskier financial assets in all assets increased in 2021–2024 and the share of deposits fell to 40%.

The survey found the debt level of Estonian households to be lower than that of the euro area on average, measured against both income and assets. Household debt burden declined between the last two survey waves. In 2024, the outstanding loan stock for a family with an average loan burden was 11% of the value of their assets and their loan repayments were 7% of their gross monthly income. The decline in debt burdens relative to both income and assets was mainly caused by rapid consumer price inflation: because nominal debt balances increased more slowly than consumer prices, debt volumes declined in real terms, thereby reducing households’ debt burdens relative to their incomes and assets. The debt level of Estonian households is lower than the euro area average. On the other hand, when comparing the ratio of liquid assets to income, in Estonia it also remains below the euro area average. The median Estonian household holds liquid financial assets equivalent to around two months of gross income, whereas households in the euro area on average hold liquid assets amounting to roughly three months of income.Out of all households surveyed in 2024, there were 8% who found it difficult to get a loan from a bank or were unable to get one at all. The share of households with credit constraints has been more or less the same since 2013, even though demand for loans has gone up. The share of families that had applied for a bank loan grew from 19% in 2013 to 31% in 2024.

The Gini coefficient, which measures wealth inequality, has been relatively stable in Estonia over the years. The Gini coefficient ranges from 0 to 1, where 0 indicates total equality and 1 indicates total inequality. According to the latest 2024 survey, Estonia’s net wealth Gini coefficient stood at 0.66, which is similar to the average across euro area countries. However, there are substantial differences in how unequally distributed various types of assets are. The value of the main residence was distributed most equally, with a Gini coefficient of 0.47. By contrast, business assets were distributed most unequally, with a Gini coefficient of 0.91.***

Some additional facts about household assets and liabilities:

• Their main residence is the most valuable asset for Estonian families, and owning a home is more common in Estonia than in other euro area countries on average
• Around one fifth of real assets consist of self-employment business assets in Estonia. This share is the highest among euro area countries.
• Mortgage loans account for the vast majority of household debt, approximately 87%.

Eesti Pank together with Statistics Estonia carried out the Household Finance and Consumption Survey (HFCS) of Estonian households in 2024. The main purpose of the survey was to collect data on household assets and liabilities and to provide an overview of the size and distribution of net wealth (assets minus liabilities) as well as households’ financial vulnerability. Similar surveys have now been carried out four times in Estonia, in 2013, 2017, 2021 and 2024.

The results of the survey are published on the Eesti Pank website.

Additional information:
Hanna Jürgenson
Communications officer
Eesti Pank
Tel 5692 0930
Press enquiries: [email protected]