Helsinki

The housing market in Helsinki is stabilizing after a period of decline, with home prices currently around 5,238 EUR per sqm for apartments, down from the previous peak of 6,000 EUR per sqm. Renting also shows a unique trend, as average rents for privately financed homes have recently fallen for the first time on record, though the median rent for a typical apartment in Helsinki now stands at approximately 23–25 EUR per sqm per month.

About 49% of Helsinki residents rent their homes, and home ownership is around 49–50%, meaning renters and owners have nearly equal shares. Publicly owned housing is significant in Helsinki’s housing landscape. The city owns about 50,000 public housing units, and municipal land policies ensure roughly 25% of homes in new districts are reserved for social/public rental housing. Social housing plays a vital role by offering long-term, below-market rents and prioritizing vulnerable groups, but it is not the same as all public housing—many public units may be built for broader affordability purposes, not strictly as social housing. Public housing includes municipal ownership and price-regulated or subsidized homes on city land, while social housing targets lower-income or at-risk populations.

Government reforms, economic uncertainty, and housing support changes are shaping the market, and public/social housing faces political pressures that may affect future supply and affordability. All prices are given in euros.

Helsinki’s housing crisis is characterized by persistent affordability challenges, constrained supply, and significant market volatility, despite recent market stabilization. Home prices have only just begun to recover after a sharp decline, but remain more than 10% below their 2022 peak. The average price for a used apartment in Greater Helsinki is roughly 2,600 euros per square meter as of mid-2025, while new apartments are substantially higher. Rental prices have also historically risen, though in 2025, rents dropped slightly for the first time on record, showing a contraction of 0.3% annually and pushing some residents, such as students, into lower-cost or shared housing arrangements due to policy changes.

The crisis affects broad segments of Helsinki’s population:

• Middle- and low-income households struggle with high prices and limited affordable options, both for renting and buying.
• Students and young adults face heightened insecurity as housing subsidies change and affordable private rentals remain scarce.
• Immigrants and lower-income workers find it particularly hard to secure stable housing due to entry costs and competition.
• Families seeking larger living spaces contend with rising demand and lack of supply, while older adults may experience challenges relocating within a tightening market.

A severe slowdown in new construction and a backlog of unsold units also threaten to constrain future housing supply further, deepening the predicament for both renters and would-be homeowners. Overall, the crisis impacts not just traditionally vulnerable groups but increasingly the urban working class and middle class as well.

Helsinki’s city administration is tackling affordable and sustainable housing by setting ambitious policy targets, expanding housing models, and launching new programs. The city’s key housing strategy for 2025–2029 targets eradicating homelessness by 2025 and facilitating inclusive, high-quality, and diverse housing for all residents. A major recent initiative is the Implementation Programme on Housing and Related Land Use (AM Programme), approved in 2024, which focuses on neighborhood diversity, preventing segregation, and boosting social sustainability.

Concrete actions include piloting the “rent-to-own” housing model, designed to provide alternatives between renting and owning, aimed at residents who don’t qualify for social housing but cannot afford private ownership. Helsinki is converting underused industrial and office spaces into residential units, prioritizing development near public transport corridors, and safeguarding green areas. The city also encourages cooperative housing, enabling future residents to design affordable homes with shared ownership structures.

Sustainability comes from refurbishing existing housing stock, prioritizing energy renovations, and supporting carbon-neutral buildings aligned with Finland’s 2035 goal for a carbon-neutral built environment. Modular and temporary housing, especially for students and mobile workers, is being piloted to add supply rapidly using underutilized urban spaces.

Support for vulnerable populations continues through the Housing First initiative, which provides immediate access to permanent homes along with tailored social support. These combined programs and policy directions reflect Helsinki’s strategic commitment to affordable, sustainable urban housing for its diverse population.

In Helsinki, housing cooperatives play a central role in homeownership. The Finnish system is distinguished by residents purchasing shares in a housing company, granting the right to occupy a specific unit. This model is pervasive: a vast majority of owner-occupiers in Helsinki are technically cooperative shareholders, with over 90% of Finns being members of some cooperative nationwide. While comprehensive figures specific to Helsinki are scarce, cooperative housing comprises the dominant ownership tenure in the city, making up the bulk of non-rental homes.

The cooperative sector is adapting to current challenges, such as declining transaction volumes due to interest rate volatility, and responding to new demographic needs driven by migration and urban growth. Helsinki supports cooperative and shared equity models, aiming to broaden access for middle-income households ineligible for social housing but unable to buy at market rates. Recent city programs encourage residents to participate in the development and design of cooperative homes, supported by land allocation policies and guidance.

Policy initiatives include piloting new cooperative and rent-to-own models, reserving land in urban development projects for innovative ownership solutions, and facilitating resident-led projects. The city’s current housing strategy values cooperative housing as both affordable and socially sustainable, reinforcing its status as an integral part of Helsinki’s evolving urban fabric.