Residential relocation in Helsinki tied to changes in family situation and income levels

The volume of migration between residential areas within Helsinki is substantial. On an annual basis, there are more relocations between Helsinki districts and neighborhoods than across the city's borders. A new study conducted by the City Executive Office examines the key factors influencing internal migration in Helsinki from 2010 to 2020, focusing on working-age Helsinki residents.

According to the research findings, changes in relationship and family situations, as well as renting rather than owning a home, increase the likelihood of changing residential areas. Conversely, living in detached houses and having a high level of indebtedness significantly reduce the likelihood of residential relocation. When life circumstances stabilize, relocations tend to occur toward higher-income areas. For example, households with children and those living in detached houses are more likely to move to higher-income areas compared to other household types.

The probability of changing residential areas increases for households in the lowest income areas as their income level rises. Conversely, in higher-income areas, the probability of relocation increases as household income declines. When comparing households with the same income but residing in different areas, it is observed that the lowest-income households are most likely to relocate from higher-income areas, while the highest-income households are most likely to relocate from lower-income areas.

Changes in both household and residential area income levels partly determine households' choices in the housing market. Income fluctuations, therefore, affect which households can or must move away from certain areas and where relocations are directed.

Relocation decisions are also associated with the income levels of other residents in the same residential area. The research findings reveal that households more likely to change their residential areas are those whose income levels differ significantly from the income levels of their residential area. Furthermore, when the income levels in the area exceed the average, it increases the likelihood of lower-income households changing their residential areas.

When considering the dynamics of intra-city migration in Helsinki and its influence, it is useful to pay attention to the factors highlighted in this study, such as the spatial distribution of housing tenures, the significance of household structure and income in relocation decisions. Intra-city migration also contributes to the development of residential area segregation. Understanding the drivers and selection mechanisms of intra-city migration in Helsinki helps in comprehending the underlying factors shaping the city's residential areas and their potential future changes.

HT