Student housing cuts worsen Rovaniemi rental crisis as tourists take flats

Rovaniemi is facing an acute shortage of student rental housing, with demand for small studios outstripping supply as short-term tourist lets further shrink the market, Yle reports.

The Domus Arctica student housing foundation has received about 550 urgent applications, a 15% increase from last year. Most seek one-room flats, which are in highest demand.

Many one-bedroom units are short-term rented to tourists during the winter season, reducing long-term availability. Some contracts end as early as late October, and current listings show no such temporary options available.

Lauri Herva, CEO of Domus Arctica, said the foundation manages 1,700 units, including 700 studios and 460 two-room flats. Nearly 90% of applicants are seeking studios.

“The situation has not improved significantly compared to last year. It will remain just as tight,” Herva said. The foundation can only offer housing as units become available through the autumn, leaving many applicants without options in August and September.

Inari Turkia, chair of the University of Lapland Student Union, said affordability is now a greater concern as student financial aid has been cut while rents and living costs rise. Rovaniemi’s studio rents have risen the second-most in Finland, with units under €500 per month nearly impossible to find on the open market.

Students are resorting to temporary solutions, including sublets for months at a time, while searching for permanent housing. Some delay moving to Rovaniemi entirely, opting for remote study from their hometowns.

Domus Arctica is constructing 177 new units near the university, with the first building set for completion in autumn 2027 and the second by the end of that year. Additional plans call for 300–500 more units in the coming years.