Finland faces wave of vacant social and healthcare properties

Hundreds of social and healthcare properties in Finland have been left empty or underused as regional wellbeing services counties cut their service networks, according to a survey by the Association of Finnish Local and Regional Authorities (Kuntaliitto).

An estimated 300 properties now stand completely vacant, with nearly 500 partially unused. Together, they represent over a quarter of the social and healthcare properties initially leased by the counties when they took over services in 2023.

The survey, which received responses from over half of Finland’s 308 municipalities, found that counties had originally leased 1,446 properties. Of these, 144 are now fully vacant, while occupancy has been reduced in 243 others.

Mikko Simpanen, Kuntaliitto’s development director, expects further cuts as financial pressures on the counties grow. “This was just the first round,” he said. “The next rounds will be just as harsh.”

In Saarijärvi, central Finland, the 19-bed Iltarusko care home has been empty since the local wellbeing services county chose not to renew its lease. The municipality attempted to sell the property at auction this spring, but no bids met the requirements. It now plans to sell without a reserve price, though expectations remain low.

“The market situation looks very weak,” said Vesa Ronkainen, Saarijärvi’s technical director. The empty building costs the municipality €35,000 annually in maintenance.

Municipalities retained ownership of the properties when counties took over services, but many report weak negotiating positions. Nearly a third of leases do not cover operating costs, and only one in ten allows for savings toward future renovations.

Pihtipudas, which saw a 3,000-square-metre health centre vacated, has struggled to find new tenants. “Even private social and healthcare operators are hard to attract without the county’s involvement,” said Ari Kinnunen, the municipality’s manager.

The emptying of these properties also removes support jobs in cleaning, security, and maintenance, accelerating population decline and eroding tax revenues. Simpanen warns the trend could drive municipal mergers.

“It sounds absurd that a merger might happen because we have an empty building, but that’s how dire the situation is,” he said.