Housing costs in Finland remain unmanageable, says Juha Pantzar of Takuusäätiö foundation

Reducing housing costs is impossible for many, according to Juha Pantzar, CEO of the Takuusäätiö foundation, who appeared on Yle’s morning show. He points out that shift work can complicate moving to more affordable housing. “In the capital region, there are many low-wage shift workers who must live near their jobs to manage their commutes,” Pantzar explains.

Negotiating rent increases with landlords is also often not an option. Jouni Parkkonen, CEO of the Association of Owners of Affordable Rental and Right-of-Residence Housing, states that housing companies operating on a cost-covering basis have no room for negotiation, as their rents are based on actual costs. This cost-covering principle means that the fees collected only cover the maintenance and financing costs of the apartments and related facilities.

Several factors have contributed to the rising housing costs in recent years, including inflation. For instance, the City of Helsinki has announced another rent increase for next year. Additionally, a range of social security cuts took effect at the beginning of April, raising concerns for both Pantzar and Parkkonen regarding their impact.

Pantzar notes that besides individual tragedies, this situation could affect the broader economic picture. “We are on the edge of a risk; the question is how many Finnish residents are struggling to afford their housing costs and whether this has national economic implications.”

Evictions, garnishments, and payment defaults have all increased in Finland. Pantzar emphasizes that evictions are a last resort and warns that many tenancy relationships may end due to financial issues without resulting in eviction. Parkkonen reiterates that no one benefits from eviction and encourages tenants facing financial problems to seek dialogue with their landlords.

Both experts believe the rising financial issues will impact homelessness rates in Finland, with 90 percent of evictions stemming from rent arrears.