The shortage of affordable rental apartments will worsen in the coming years Homeland

Reasonably priced rental apartments may be difficult to find in the near future. In the coming years, clearly fewer government-subsidized apartments will be built.

Anne Witta, executive director of the Tenants’ Interest Association, says, for example, that an affordable apartment is a prerequisite for many people to come to work in the capital region.

The shortage of affordable rental apartments will worsen in the coming years. This will, among other things, result in government subsidized affordable housing production or Ara production being drastically reduced in a couple of years.

Housing Finance and Development Center Deputy Director Ar Kimmo Hoovinen It says production has halved compared to previous years.

– This year and next year, it will revive, but then the production will clearly fall.

In addition, state-supported production of residential housing is coming to an end by the end of 2025.

Kimmo Houvinen, Deputy Director of Aura, believes that a new transitional model of rental and owner-occupied housing will be created. Photo: Jirgi Ojala

Last year, 8,600 Ara flats were constructed, this year too, 10,000 flats will be constructed. Next year, we will increase to 7,000–8,000 apartments, but by 2026, we will reduce to around 5,000 new apartments.

Ara Apartments are owned by municipalities, municipal associations and non-profit organizations. Some apartments are owner-occupied apartments, some are rental apartments and some are leasehold apartments.

“The situation is dire”

Executive Director, Tenants’ Interest Organization, Vukralizet Rai Anne Vita For example, in Helsinki even at this time, he says that more than 20,000 people are waiting for a rental apartment in the city.

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– The situation looks very bad in the coming years, says Vita.

Vita reminds us that in addition to declining Macca production, many people looking for rental apartments have been hit hard by the government’s housing cuts and high rental levels of apartments.

– In this scenario, many people have to look for more affordable apartments, further crowding the demand for affordable rental apartments.

Kimmo Houvinen, Deputy Director of Aura, says that apartments are available for hard money at the moment, but rent levels are too high for many.

For example, in Helsinki, rents for low-income apartments are around 14 euros per square meter, while rents for high-end apartments are around 20 euros per square meter.

Anne Witta, executive director of Vukralizet Rye, says the outlook for the coming years is not good for the capital region, which is suffering from a labor shortage.

– For many, a reasonably priced apartment, for example, is a prerequisite for coming to work in the capital region.

Minister defends market-based production

The Minister of Environment and Climate is responsible for Home Affairs Kai Maikanen (co.) According to the government programme, it is outlined that in the future, household production will be more based on market conditions than at present, rather than state-supported ara production.

Mikkanen believes that the scale of Ara production will be sufficient in the coming years, as in the future Ara production apartments will be more precisely targeted at low-income populations.

– State taxpayer subsidized apartments are better allocated to groups that cannot do well in the normal housing market.

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Environment and Climate Minister Kai Maikanen.

Kai Mikkanen, the minister in charge of housing, does not believe the decline in maize production will make it harder to find labor in development centers. Photo: Jari Kovalainen / Yell

Mikkanen says that the main rule in the rental market should be that rental housing can be found in a market-based offer.

Maikanen does not believe that labor will be difficult to find in growth centers as Macao’s production declines. According to him, the attraction and vitality of growth centers is best supported, for example, by taking care of good transport links.

— I do not think that the supply of labor will in the long run depend upon the quantity of the production of maca.

Maikanen recalls that there are more rental apartments on the market than a few decades ago.

– As a result, the state can change its own share of household production.

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