Kalasatama towers in Helsinki. Photo: Heikki Saukkomaa / Lehtikuva
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Rental prices in the Helsinki metropolitan area have declined for the first time since national statistics began tracking the figures in 2015.
According to Statistics Finland, rents for privately financed housing in the capital region fell by 0.3 percent between April and June compared to the same period last year. The agency said rents in the rest of the country rose by 0.9 percent during the same period.
Martti Korhonen, chief actuary at Statistics Finland, described the development as “exceptional” and noted that the trend breaks a long period of steady but slow growth.
Privately financed rents in the Helsinki area have been rising at an annual pace of around 0.5 percent or less for years. No previous quarterly fall has been recorded since the current rental statistics methodology was introduced.
In the second quarter of 2025, rental prices decreased in all property categories in Vantaa, where the total drop was 0.8 percent. Smaller decreases were recorded in Espoo and Helsinki for studio apartments. Rents for larger units remained unchanged in most other parts of the metropolitan area.
The strongest rent growth among large cities was in Rovaniemi, where prices increased by 2 percent.
Korhonen attributed part of the dip to government policy changes affecting housing support. A reform of student housing subsidies will take effect in August, ending access to general housing allowance for many students. This is pushing students to seek lower-cost housing options and shared living arrangements.
“The reform could have a locally significant effect on the private rental market, especially in cities where there is already an oversupply of new and expensive rental apartments,” Korhonen said in a statement.
The drop in rents in the capital region contrasts with the overall market, where rental prices have continued to climb slowly but steadily. In other areas of Finland, prices have remained more aligned with the general increase in living costs.
Rents in cities outside the Helsinki region have not shown signs of decline, and in several areas the rental market remains tight. In most municipalities, demand continues to outpace supply for affordable housing, especially in city centres.
Nationally, the general trend still points upward, but the stagnation or slight drop in urban centres like Helsinki and Vantaa signals potential shifts in tenant preferences and market dynamics. Housing benefit reforms, changes in student housing patterns and an increased number of rental units may contribute to this trend in coming quarters.
The full impact of subsidy reductions and housing market developments is expected to become clearer during the autumn months. Statistics Finland will release updated figures in October.
HT
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Source: www.helsinkitimes.fi
