“There has never been such a situation in Helsinki,” he said.
One of the analytical factors is the devastating impact of the epidemic on the restaurant and accommodation business, which has traditionally been a major employer of young people. Another factor is the flow of units previously marketed to short-term tenants in the online hosting market, such as Airbnb.
“Young people in their 20s and 30s usually rent. The number of jobs is currently lower than usual, so young people move less and move less to Helsinki, ”Randell explained.
He confirmed that no similar increase in the availability of subsidized units managed by the Finnish Housing Finance and Development Center (ARA) has been observed. The gap between the demand and supply of vacant housing, he added, has also slowed the rise in rents.
“I am sure that the demand for housing will be in the future, and it is really great that the tenants finally have more options in Helsinki,” he told YLE.
He also expressed doubts that the phenomenon is an indication of a long-term trend, referring to, among other things, continued urbanization, rising house purchases on an annual basis, and rising house prices.
The Finnish capital has set a goal of producing 7,000 homes in 2021, and the goal was comfortably achieved in 2020. “Even the coronavirus could not slow down this production,” Randell said.
Aleksi Teivainen – HT
Source: The Nordic Page