Kokkola remains Finland’s cheapest city for housing costs

Kokkola is Finland’s cheapest city for housing costs for the second consecutive year, according to a comparison by the Finnish Real Estate Federation reported by Yle.

Low district heating costs have helped Kokkola retain the top position. Along the Ostrobothnian coast, district heating is considerably cheaper than elsewhere in Finland because it is produced from waste or uses industrial waste heat.

The other four places among the five cheapest are Rauma, Jakobstad, Mustasaari and Kempele. The most expensive are Helsinki, Järvenpää and Heinola.

The Finnish Real Estate Federation’s 2026 comparison examined taxation, waste management, water charges, electricity costs and district heating costs for apartment buildings in 59 cities.

Municipal energy and waste management tariffs rose by about 2 per cent from the previous year. The increase was smaller than the year before, when costs rose by about 3.5 per cent.

Waste charges are rising

Mervi Ala-Prinkkilä, executive director of the Ostrobothnia branch of the Finnish Real Estate Federation, said Kokkola, Jakobstad and Mustasaari benefited from cheaper district heating. Property taxes and water charges are also relatively low in Central Ostrobothnia and Ostrobothnia, she said.

However, Vaasa and Mustasaari have high waste charges, which increase housing costs. Waste prices have also risen in Jakobstad and Kokkola after Ekorosk raised its charges, Ala-Prinkkilä said.

According to Ala-Prinkkilä, cities could help keep housing costs low. The prices of electricity, district heating and water are influenced by political decisions and can also bring additional revenue to municipal budgets.

She said municipalities could refrain from increasing property taxes. In Jakobstad, the property tax was raised substantially about two years ago. According to the Finnish Real Estate Federation, Jakobstad recorded Finland’s largest increase in building property tax in 2023, at 23 per cent.

Cold winters can increase costs

Ala-Prinkkilä warned housing companies to prepare for cold winters even if the previous winter was mild. She said they should budget for extra costs to avoid surprises and the need to collect additional maintenance charges if they lack the money to pay district heating bills.