Housing costs surge in Helsinki as experts warn of rising evictions in Finland

Reducing housing costs is impossible for many. During an appearance on Yle’s morning show, Juha Pantzar, CEO of the Takuusäätiö (Guarantee Foundation), highlighted that night shifts can complicate moving to more affordable housing options. “There are many low-paid shift workers in the capital region who must live close to their jobs to manage their commutes,” Pantzar explained.

Negotiating rent increases with landlords may not always be an option. Jouni Parkkonen, CEO of the Association of Affordable Rental and Right of Occupation Housing Owners, stated that housing companies operating on a cost-price basis have no room for negotiation, as their rents are based on actual costs. The cost-price principle means that fees or rents are collected solely to cover the maintenance and financing costs of the apartments and related facilities.

Several factors contribute to the current housing crisis. Rising living costs have been a consequence of inflation, with the City of Helsinki recently announcing yet another rent increase for the coming year. In addition, a series of social security cuts took effect at the beginning of April, raising concerns from both Pantzar and Parkkonen.

“Alongside individual tragedies, this situation could already affect the overall economic picture,” Pantzar remarked, questioning how many Finns are struggling to meet their housing expenses and whether this will have national economic implications.

Evictions, enforcement actions, and payment defaults have been on the rise in Finland, with Pantzar noting that evictions are a last resort. “There are many cases of tenancy endings due to financial difficulties, but not all lead to eviction,” he said. Parkkonen emphasized that eviction benefits no one, advocating for dialogue with landlords to resolve issues before they escalate. Both agree that addressing financial problems promptly is crucial, as long-standing economic issues could significantly impact homelessness statistics in the future.