One of the effects of the coronavirus pandemic has been the increase in the number of vacant rental dwellings in the Finnish capital.
According to the City of Helsinki’s housing program manager Mari Randell, the number of rental apartments vacated over the past year has gradually increased and there are currently about 2,000 homes online.
"Such a situation has never been seen before in Helsinki," says Randell.
Fewer young people are moving
Randell explains the situation in part by the fact that the restaurant and tourism industry has been hit hard by the coronavirus pandemic. These are sectors that typically employ a lot of young people.
"Young people aged 20-30 often live in rental housing. At present, these jobs are not available in the same way as before, so young people are moving less and less to Helsinki," Randell explains.
In addition, many of the homes used for Airbnb accommodations have now become long-term rentals.
According to Randell, rental housing in the open market in particular is more widely available, and there is no corresponding increase in the availability of state-subsidized housing.
The situation also seems to have curbed the rise in rental levels.
"The demand for housing is certainly constant, and it’s really great that finally Helsinki’s tenants have more options," says Randell.
Thousands of new apartments
While the pandemic appears to have reduced demand for rental housing, Randell does not believe this is a long-term trend.
"Urbanization continues, owner-occupied housing prices have continued to rise and more homes were bought last year," he points out.
The City of Helsinki has set ambitious goals for housing construction. This year’s target is 7,000 new homes. Last year, the city’s corresponding target was exceeded.
"Even the coronavirus has not hindered construction," Randell says.