Helsinki

Helsinki’s housing market in mid-2025 is recovering modestly from recent declines, with prices stabilizing and rental demand remaining strong. About 47% of residents own their homes, while over 50% rent, a figure higher than the national average due to the city’s transient population and high share of young adults and immigrants. Publicly-owned housing plays a significant role, as the city owns 70% of land and manages around 60,000 housing units, of which approximately 48,500 are government-subsidized rentals. Public or “social” housing in Helsinki mainly refers to these subsidized units, but also includes specialized housing for vulnerable groups; the majority of new subsidized construction now focuses on such special groups, reflecting a shift from broader social housing to targeted welfare support.

The most recent reported average price for a second-hand apartment in Greater Helsinki is €2,609 per sqm, while new apartments average €4,954 per sqm citywide and €6,569 per sqm in new buildings. Prime central districts see prices exceeding €9,700 per sqm. Typical rents for private-sector apartments average €24–€28 per sqm per month, with city-regulated public housing rents lower. Helsinki’s policy requires at least 25% of new housing in each area be social (public) rental homes, ensuring a diverse housing mix and limiting segregation. Public housing and social housing are often synonymous in Helsinki, but a significant portion is now reserved for special needs groups, making the system more targeted than the city’s broader affordable-housing schemes. All prices are in Euros.

Helsinki’s housing crisis is characterized by a complex mix of supply constraints, affordability challenges, and increasing signs of acute housing distress. Although housing construction has recently stagnated, with only about 4,000 new units completed in 2024, the number of vacant private rental apartments is unusually high, exceeding 11,000 by the end of last year, reflecting both weak demand for purchasing and tightening rental market conditions. Meanwhile, population growth, a high share of young adults, students, and immigrants, and changing household structures fuel ongoing demand, particularly for affordable and smaller dwellings.

Homelessness, which had been on a downward trend in Finland, is now rising again. In 2024, the official count recorded 3,806 homeless people nationwide, including 694 sleeping rough or in emergency shelters. Short-term homelessness among single individuals increased, signaling mounting pressure on those at the margins—especially low-income households, young adults, students, the elderly, immigrants, and people with disabilities. These groups are disproportionately affected due to limited housing supply, insufficient affordable options, and, for some, barriers to the private rental market.

Despite the notable inventory of vacant rental apartments, long-term supply of new housing is threatened by historic lows in construction activity, company bankruptcies, and the absence of large-scale projects expected before 2027. This shortage is likely to further drive up costs and exacerbate the housing struggles of vulnerable groups, including those already facing exclusion from market-based housing.

Helsinki’s city administration aims to ensure both affordability and sustainability in housing through a policy mix centered on social inclusion and environmental goals. The city’s core targets—formalized in its 2024 Implementation Programme—include building 6,000 dwellings each year, with at least 25% of all new construction reserved for regulated, subsidized rentals and efforts to prevent regional segregation. The new program also emphasizes a diverse housing stock across all neighborhoods, combining various forms of ownership and tenancy to cater to different life stages and needs.

Key concrete actions include:

- Regulating housing prices through the Hitas system, which limits prices on city-owned land to make home ownership feasible for middle-income groups.

- Continuing direct public production of subsidized rental homes and supporting a company share model that lowers ownership barriers.

- Piloting a rent-to-own scheme as an intermediate option between renting and buying, especially for those ineligible for traditional pathways.

- Aggressively pursuing homelessness eradication by 2025 through the Housing First approach, which integrates affordable housing with social support, and expanding both supported and independent living options for vulnerable groups.

- Promoting sustainable construction by collaborating with companies to develop eco-friendly building materials and methods.

The city’s stated goal remains eradicating homelessness by 2025, but recent policies and expanded support reflect a sustained commitment to overall affordability, long-term social mixing, and ecological responsibility within Helsinki’s neighborhoods.

Cooperative housing in Helsinki represents a small but growing segment of the overall housing sector, with around 50 active cooperative projects in Finland, the majority focused in urban areas like Helsinki. These cooperatives remain a niche alternative, accounting for only a minor share of total housing units in the city. Cooperative models primarily target residents who fall between social rental eligibility and the affordability of market-rate ownership or rent. Recent years have seen increased national and municipal support, including subsidies for group-based cooperative construction and pilot projects aimed at expanding this model.

The sector is gaining policy attention as rising housing costs and widening affordability gaps prompt exploration of new solutions. Challenges persist—especially in securing land, financing, and navigating institutional requirements—but interest is mounting, particularly in new development zones negotiated with the city.

Helsinki supports cooperative housing as part of a broader strategy for a diverse and inclusive housing mix. Key city programs include making land available for innovative models, direct subsidies, and advisory support. Nationally, ARA (the Housing Finance and Development Centre of Finland) facilitates cooperative pilots through targeted grants. Overall, cooperatives are still an experimental but promising element in Helsinki’s housing policy, complementing robust social rentals and regulated home ownership to promote affordability and community involvement.