One of the chief factors for the development of a country is the development of its cities, and one of the chief factors for a development of a city is the development of its residential districts or neighbourhoods, but the very core and pillar of the development of a country, city and its neighbourhoods is their residents. The given article looks into the significance of Riga neighbourhoods in the sustainable economic development of the city. Riga is the capital of Latvia. It is located next to the Gulf of Riga. The city is more than 300 square kilometers large and a population of it is about 700 thousand inhabitants. Within the framework of this article, one can see that current development rates of the neighbourhoods and steady development of the city as such do not exist or are not observed. The article considers basic deficiencies of Riga planning documents and provides a brief insight into the history of the city and its general characteristics. © IEOM Society International. © IEOM Society International.