Changing Social Divisions in the Housing Market of Tallinn, Estonia

Abstract

Changes in the division of social groups between housing market segments in Tallinn, Estonia, during the period of implementation of liberalist housing reforms in the 1990s are discussed. The principal changes in residential pattern and the causes of these changes are explored. The developments in Tallinn are set in the context of a wider debate about residential segregation in European countries. The findings show that socioeconomic residential structure, in addition to tenure structure, has been most affected by the social transformation. Under the new conditions, housing market divisions are beginning to reflect social divisions. Besides increasing differences in incomes, the changing residential pattern is influenced by housing policy, individual preferences and existing housing market structure. Current developments in housing policy and income structure lead us to expect increasing socioeconomic inequality in the housing market in the present decade.