There is just over a week left until the new academic year starts, which means thousands of students have once again set the rental market buzzing. Apartments in prefabricated buildings and smaller wooden houses are in high demand.

However, there are around 10 percent fewer apartments on offer this year than last year. The Uus Maa real estate agency has observed a similar situation.

"While demand was at roughly the same level, supply this year was 7 percent lower compared with 2025. Those 7 percent have most likely started renting out their apartments on a short-term basis," Uus Maa Pro real estate agent Karl-Villiam Vaserik told Sunday's "Aktuaalne kaamera."

Demand has pushed up apartment prices. The average rent for a one- or two-room apartment is currently between €400–650 a month, depending on its condition and location.

"For a student, that €400–650 is quite a significant sum, especially in the first years when the student is not working. It is not very easy to take that out of the parents' wallet either. You also have to add money for food and other expenses," said Luminor chief economist Lenno Uusküla.

He said prices have risen "because they can be raised."

"Apparently there are relatively few offers. On the other hand, if you look at Estonian consumer confidence, it has improved. At the beginning of the year, those earning above the median wage took home more money as a result of the income tax change," Uusküla said.

The most desirable districts of the capital for students are the city center, Põhja-Tallinn and Mustamäe, which are closest to the universities.

There is also another, cheaper option on the table – renting accommodation in a dormitory.

"The cheapest option is €161 a month, a bed in a double room. Everything is already included in the price," said Jaak Kääp, head of Tallinn University of Technology's student village.

However, a brand new dormitory at TalTech has a price tag of €440 a month, which includes all additional costs. There are 150 students on the waiting list.

"In previous years, we practically had no one waiting at all; this year, suddenly, we do," Kääp said.

For those currently without accommodation, more options should become available on the rental market again in a few months, and prices should also come down slightly.

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