HOUSING may soon gobble up as much as a third of household income in Finland, reveals a study carried out by Pellervo Economic Research (PTT).
The study indicates that the housing costs of mortgage borrowers and tenants of non-subsidised rental houses will increase by about two per cent in the next two years, with housing commanding a particularly large chunk of the income of medium-income one-person households.
The surge in remote work caused by the coronavirus pandemic has made floor space a more important criterion for home buyers.
“Location remains an important factor in the house market, but its importance has decreased. It will be interesting to see in the coming years whether the trends of the coronavirus era will persist also after the pandemic,” commented Peetu Keskinen, an economist specialising in the house market at PTT.
The study found that demand for centrally located houses remains extremely high – particularly for detached and terraced houses.
“It has been known for years that the majority of Finns want to live in a detached house. It seems now that people have started to fulfil their dreams more than before,” analysed Janne Tähtikunnas, the executive director at Home Owners’ Association.
Jukka Kero, the chief economist at the Finnish Real Estate Federation, underlined that decision makers should take action to ensure the costs of housing and residential renovation remain under control.
“For housing emissions and energy efficiency to continue on their target trajectories, it is necessary to duplicate successful examples, incentives and investment support, as well as accessible funding, in all parts of Finland. Proposals in the European Commission’s climate package are flush also with obligations and prohibitions, which if implemented would not lead to success when it comes to climate goals,” he argued.
The study was commissioned by the Finnish Real Estate Federation and Home Owners’ Association.
Aleksi Teivainen – HT