The increase in housing costs and the large differences between municipalities are primarily due to the increase in the price of electricity, which has risen by an average of 46% since a year ago. Waste fees have risen by an average of 6.7%, real estate taxes by 6.3% and water fees by 4.1%.
The most expensive municipality in terms of housing costs was Laukaa in the Jyväskylä region, where the costs are 8,466 euros ($10,083) per year. The next most expensive municipalities were Lempäälä, Ylöjärvi, Asikkala and Pirkkala. The study compared 100 municipalities across Finland. The cheapest municipality was Lapland’s Kittilä, where living costs are 4,681 euros ($5,573) per year. Thus, the difference between the cheapest and most expensive municipalities is 3,785 euros ($4,502) per year. This difference has increased slightly from last year, when it was 3,361 euros ($3,996).
CEO of Suomen Asunnonomistajaliitto ry, Marju Silander, stressed that decision-makers must take action to reduce housing costs in the next election period. “At the moment, an increasingly large part of people’s disposable income goes to basic needs, such as electricity, water and waste fees. When it is combined with rapidly rising mortgage interest rates and rising repair costs due to the energy efficiency obligations of future buildings, the cost of living and its increase becomes unsustainable,” Silander said.
The sharp increase in electricity transmission costs in recent years seems to have slowed down, which Silander considers a step in the right direction. However, there is still work to be done. “Transfer costs must be reduced and excessive profits must be eliminated,” he said.
The survey also found significant differences between municipalities in other costs. The highest water charges are now paid in Parikkala, where the price is 1,651 euros ($1,965) per year, while the lowest water charges are in Kempelee, 549 euros ($653) per year.
The highest waste fees are in Asikkala and Heinola, where they are 391 euros ($465), and the cheapest are 133 euros ($158) in Tampere and its neighboring municipalities Kangasla, Pirkkala, Nokiala and Lempäälä.
The transition to municipal waste management has reduced costs in some municipalities, such as Sysmä, where costs have decreased by 21%. The study emphasizes the importance of the government’s actions to combat the rise in housing costs and to promote more affordable housing.
Source: The Nordic Page