Rae parish is one of the fastest growing and developing local governments in Estonia. In recent years, the municipality has added about 1000 inhabitants per year. Today, the population is about 23,500. Urban sprawl is taking place, people are moving to the municipalities around the big cities, including Rae municipality. This leads to a continued rise in the birth rate in the municipality. Rapid birth rates and population growth pose ever-new challenges, both in environmental design, energy efficiency, nature conservation, infra, education and reducing the CO2 footprint.
The rapid birth rate and population growth in Rae parish affects the development of the municipality as well as the development of the wider northern region. Consequently, short-term and long-term activities must be planned simultaneously. It is necessary to make decisions wisely. Decisions affect labor and economic growth. More people can mean more consumption and business growth. A growing population usually means more tax revenue for local government, which may allow for more investment in improving infrastructure and public services. On the other hand, rapid population growth can create pressure on local government infrastructure such as roads, schools, hospitals and water supply. Housing construction, transport, increased demand for services, etc. are affected.