Finnish Housing Costs Rise Sharply in 2024, Especially for Homeowners
Finnish housing costs are set to increase significantly this year, with homeowners facing steeper rises than tenants, according to a report by the Finnish Real Estate Federation and the Finnish Homeowners’ Association, conducted by Pellervo Economic Research (PTT).
The report forecasts an average increase of just under three percent in housing costs across Finland in 2024 (MTV Uutiset). However, the rise varies sharply depending on housing type. Detached house owners will see costs climb by nearly five percent, driven by higher interest expenses and rising heating energy prices, particularly for oil and electricity. This follows a slight decline in 2023, when costs for detached house residents fell by a couple of percent (Yle).
Apartment owners in multi-storey buildings will face a three percent increase, primarily due to rising maintenance costs. In contrast, tenants will experience the smallest rise, with costs increasing by just one percent on average. In the Helsinki Metropolitan Area, market rents are even expected to decrease slightly, while elsewhere in Finland, a modest increase is anticipated (Yle).
Regional and Household Differences
Housing remains most expensive in the Helsinki Metropolitan Area and other large cities, for both homeowners and renters. Among the comparison cities, Kotka, Kouvola, Pori, and Rauma offer the most affordable housing options (Yle).
The report highlights significant disparities in cost increases based on household type. Retirees living in oil-heated detached houses will face the steepest rise—around 14 percent—while families with children in similar homes will see costs increase by nearly nine percent. Meanwhile, middle-income tenants in apartment buildings will experience only a 0.5 percent rise (Yle).
Monthly housing costs vary widely. A tenant in a small studio apartment can expect to pay just over €500, while a family with children owning an apartment in a multi-storey building may face costs exceeding €1,400. Despite the increases, the share of housing costs in net income will remain stable at 23 percent on average this year (Yle).
Energy Prices Drive Costs
The rise in housing costs is largely attributed to higher interest rates and energy prices. The increase in interest rates has particularly strained homeowners with debt, while heating expenses for detached houses have surged due to elevated oil and electricity costs (MTV Uutiset).
Electricity prices may rise further next autumn, potentially exacerbating the financial burden on households (MTV Uutiset). However, the growth in housing costs is expected to slow slightly in 2025 as energy price increases stabilize (Yle).
"This year, there are significant differences in the development of housing costs between different housing types. Tenants are in a considerably better position than homeowners," said Veera Holappa, Senior Economist at PTT (Yle).
