This paper describes the factors that influence and will influence in the future the demand for dwelling space in Latvia. The real estate market and its various segments develop cyclically. The length and deepness of these cycles is influenced by factors like the country’s economic situation, employment, income level, commerce bank crediting, country’s demographic situation and its development, as well as other factors. This paper outlines the possible link between these factors and the dwelling space market. Qualitative and focused identification and determination of these connections gives an opportunity to forecast the possible directions of development in this sector and can help inhabitants, real estate developers and the government in decision making.