Wooden construction plans collapse in Tampere, Finland as shifts to concrete begin

In Tampere, Finland, plans for an entire block of wooden apartment buildings were envisioned just two years ago. By the time one-third of the 600 planned apartments had been completed, the wooden construction plans collapsed, leading to a shift to concrete. “We couldn’t find a suitable domestic entrepreneur,” explained Kirsi Koski, CEO of the Tampere Student Housing Foundation. The previous contractor from Kuhmo had gone bankrupt, and the first buildings in the block were created in collaboration with an Estonian entrepreneur.

Tampere is not alone in facing a halt in wooden construction; similar situations are unfolding across Finland. Structural Engineering Professor Markku Karjalainen identified six major stalled wooden apartment projects in the country. Many delays are not solely due to bankruptcies; the sluggish market for new ownership properties has also caused setbacks in wooden construction.

Karjalainen, known as “Mr. Wooden Apartment,” has dedicated his career to promoting wooden buildings. While their share in apartment construction has grown in recent years, he warns that bankruptcies pose a significant threat to the sector’s development. The collapse of several wood construction companies sees the industry’s talents dwindle further. He notes key companies like Sisco, Elementti-Sampo, and others have declared bankruptcy in recent years.

Despite decades of discussions and the construction of about 200 wooden apartment buildings since the 1990s—just about 1% of annual new apartments—Finnish progress lags behind neighboring Sweden, where 20% of new apartments are wooden.

Environmental impact assessments for construction will become mandatory in 2026, which Karjalainen believes could boost interest in wooden construction once again as the sector grapples with the higher costs and regulatory challenges associated with timber buildings. Meanwhile, the first students have started moving into the newly completed wooden apartments in Tampere, a pioneering project led by Koski’s foundation that showcases a commitment to lower carbon footprints.