Lappeenranta faces sudden housing shortage as major construction projects launch

The southeastern Finnish city of Lappeenranta is bracing for an acute housing shortage this autumn as multiple large-scale construction projects begin simultaneously, reversing years of oversupply, according to city officials.

Mayor Tuomo Sallinen told Yle that demand surged unexpectedly when developers recently requested 100 apartments immediately for incoming workers. “The situation is completely unprecedented—projects of this scale were unthinkable just a few years ago,” he said.

Over 2,000 construction workers are expected to arrive in phases, primarily for a 310-megawatt AI data center and a protein production plant. The data center, developed by Nebius and built by Polarnode, will employ up to 700 workers at its peak in early 2027, with additional phases extending the timeline. Solar Foods’ protein factory, if funded by summer’s end, will require roughly 1,000 worker-years, with 200 on-site simultaneously. A planned multi-purpose arena could further strain housing in 2027.

Local spas and hotels, including Lappeenranta’s Holiday Club Resort and Imatra Spa—currently in financial restructuring—are preparing to accommodate workers, particularly on weekdays. Imatra Spa’s incoming CEO Timo Welsby noted the arrangement would ease the facility’s economic struggles while allowing gradual reinvestment.

The city will coordinate with private landlords and service providers, but Sallinen emphasized that meeting demand will require collective effort from local businesses. “Suddenly we need hundreds of housing units,” he said. “This calls for quick, collaborative solutions.”