Finland is experiencing a growing demand for housing, which could lead to rising property prices, particularly in urban areas like Helsinki and Tampere. According to the Pellervo Economic Research Institute (PTT), house prices are expected to increase slightly this year, with urban centers seeing the highest spikes due to strong population growth. Key factors driving this demand include high net immigration, internal migration to cities, changes in household composition, and the need to replace aging housing stock. Approximately 85% of new housing demand will be concentrated in urban areas. A report by the VTT Technical Research Centre estimates that Finland, with its 5.5 million population, will need to build 31,000–35,800 new homes annually to keep up with demand, amounting to 600,000–700,000 new houses by 2045. However, the construction sector faces significant challenges. In 2023, only around 21,000 homes were built—the lowest figure in a decade—due to rising interest rates and declining investor demand. The construction slowdown is expected to continue in the short term, with experts warning of potential long-term consequences if building levels do not rise. Despite the slowdown, the trend of single-family homes is growing, and the housing supply per capita is projected to increase gradually. However, there are concerns about unsold properties, as seen last autumn when 5,000 new homes remained unsold, an unusually high figure.
