Number of renters in Finland surpasses one million as smaller households increase

By admin On Sep 20, 2024

LEHTIKUVA

In 2023, the number of households renting their homes in Finland exceeded one million for the first time, according to recent data from Statistics Finland. By the end of the year, 1.02 million households were living in rental accommodations, representing a 2.2% increase compared to the previous year.

“Last year, 36% of all households were renting, up six percentage points from 2010,” noted Mika Ronkainen, Senior Statistician at Statistics Finland.

The total number of households in Finland has also grown, rising from 2.5 million in 2010 to over 2.8 million in 2023. However, while ownership remains common, the number of renting households has surged by nearly 250,000 over this period, compared to an increase of only 83,000 for owner-occupied households.

This growth is largely attributed to smaller households. The number of one-person households has increased by 28% since 2010, while two-person households have risen by 8%. In contrast, the number of larger households has declined, with 13,000 fewer three-person households compared to 2010.

“As the number of smaller households has grown, renting has become more common,” Ronkainen explained. “Rental households tend to be smaller on average than owner-occupied ones, which is also reflected in the size of the apartments.”

Smaller apartments are much more likely to be rented. In fact, 63% of households living in one- or two-room apartments were renting last year.

Ownership Still Dominates, Except Among Younger Adults

While renting is on the rise, especially in apartment buildings, ownership remains the most common form of housing in Finland. Last year, around 61% of households living in apartment buildings were renting, but homeownership still dominates in other housing types.

“There are over a million households living in detached or semi-detached houses, with only a small percentage renting,” said Ronkainen. “In row houses, too, the majority of residents are homeowners.”

Despite the increase in renting, homeownership continues to be the leading form of housing, with 1.7 million owner-occupied households last year compared to just over a million renting households.

Renting is particularly prevalent among one-person households and younger residents. In 2023, 82% of households formed by individuals under 30 were renting. However, as people age, renting becomes less common. Even so, the trend is shifting, as seen among older adults. For instance, 32% of people over 60 who live alone were renting in 2023, compared to 29% in 2010.

Renters generally live in more cramped conditions compared to homeowners. Last year, residents of rental apartments in apartment buildings had an average of 32 square meters of living space per person, while those in owner-occupied apartments enjoyed an average of 41 square meters per person.

The data highlights a growing shift towards rental living in Finland, driven by the increasing number of small households and a rising preference for renting, particularly among younger adults.

Source: www.helsinkitimes.fi