Helsinki

1. Design Capital: Helsinki was named the World Design Capital in 2012, highlighting its commitment to design and innovation. The city showcases a vibrant design scene, with numerous design events, exhibitions, and a focus on sustainability in urban planning. 2. Sauna Culture: While many are aware of Finland's famous sauna culture, Helsinki boasts an impressive number of public saunas, some of which are located by the sea. These saunas offer a unique way to experience Finnish traditions and are often seen as communal spaces for relaxation and social interaction. 3. Green City Initiatives: Helsinki is one of the greenest cities in the world, with over 200 square kilometers of parks and green spaces. The city actively promotes green living, with initiatives like urban gardening programs, green roofs, and extensive cycling paths, making it a model for sustainable urban living.

Helsinki’s housing market is emerging from a downturn, with signs of recovery expected in 2025. About 48% of Helsinki residents rent their homes, while approximately 52% are homeowners. Young adults are more likely to rent, and urbanization is fueling ongoing demand for both rental and owned housing. The median rent in Helsinki for a one-bedroom apartment ranges from €800 to €1,200 per month, translating to roughly €24–€36 per square meter. For buyers, the median price per square meter in Helsinki is around €4,700, though prices vary by location and property age. Publicly owned housing plays a significant role in the city. Nearly 32% of all rental dwellings in Finland are government-subsidized, with a larger concentration—up to 45%—in the Greater Helsinki area. Public housing in Helsinki encompasses two forms: social housing, which is income or need-based, and general publicly owned rental units, which can also be available at market rates. Therefore, public housing and social housing are not identical; the key difference is that not all public housing is reserved for low-income residents, while social housing specifically targets those with the greatest need. Overall, Helsinki’s housing scene is marked by high rental demand, relatively expensive prices, and a robust public sector presence in the rental market.

Helsinki is facing a significant housing crisis driven by rapid urbanization, with an estimated 85% of Finnish households projected to live in urban areas by 2025. This migration places substantial pressure on the city’s real estate market, resulting in fierce competition for both rental and owned housing. By 2025, the cost of renting a one-bedroom apartment in Helsinki is expected to rise by 10%, with current rents already ranging from €800 to €1,200 per month. Demand consistently outpaces supply, especially in central districts, leading to steadily increasing prices and limited housing availability for newcomers, existing residents, and low-income groups. The crisis impacts a wide range of residents including young adults, students, the elderly, and incoming migrants. Young people, particularly those on low incomes or without family support, face long waiting times for affordable or subsidized housing. Elderly citizens and new arrivals are also increasingly vulnerable to housing insecurity and face barriers to securing stable accommodation. Additionally, higher construction costs, sustained urban migration, and the risk of government cuts to social sector funding exacerbate the problem. Even as Helsinki has a traditionally strong public housing sector, the demand for affordable homes far exceeds supply, leaving many on long waiting lists or struggling to pay rising rents. The situation is compounded by a persistent backlog in housing construction and bureaucratic delays, sometimes caused by local opposition.

Helsinki’s city administration is actively addressing affordable and sustainable housing through strategic targets and concrete programs. The city’s current approach is defined in its 2024 Implementation Programme on Housing and Related Land Use (AM programme), which emphasizes social sustainability, housing diversity, and neighborhood vitality. A key target is the complete eradication of homelessness by 2025, which is part of Helsinki’s City Strategy and supported by a steady decline in the number of unhoused residents over the past decade. To create more affordable and sustainable housing, Helsinki pursues multiple initiatives. The city drives the development of diverse housing stock—ensuring a range of occupancy and funding models to avoid regional segregation and to support various population groups and life situations. A notable new program is the piloting of a rent-to-own model, offering a path between renting and ownership, which increases flexibility and aims to serve those not well matched to traditional forms of tenure. Helsinki also invests in the Housing First model, which prioritizes providing permanent housing for the homeless without preconditions, supported by housing counselling and social work to prevent repeat homelessness. The city’s social housing production, supported by state-backed ARA loans, is increasingly geared towards green and socially sustainable construction—with most new publicly financed housing meeting enhanced environmental standards. These combined measures underscore Helsinki’s commitment to both affordability and sustainability in the housing sector.

In Helsinki, housing cooperatives are a well-established model, but their direct share of the city’s total housing stock is limited and not precisely documented in city-level statistics. While cooperatives exist throughout Finland, the national share of cooperative or “limited-profit” housing is estimated at around 13%, with a higher presence in large cities, especially within affordable or social housing segments. The sector’s development in Helsinki faces institutional and financial challenges, such as access to land, financing, and regulatory hurdles. However, the city views cooperative housing as part of its effort to create a diverse and inclusive residential environment, complementing public and private housing. Helsinki’s municipal land policy supports cooperative and community-led models by allocating public plots through competitive processes and offering long-term leases—often at reduced rates—to developers including cooperatives. The city’s strategic housing policy roadmaps have included pilot projects aimed at supporting cooperative and community-led projects, such as cohousing and community land trusts. Recent city initiatives promote “block courtyards”—green, shared outdoor spaces that bring multiple housing cooperatives together, aiming to enhance social cohesion, lower living costs, and foster urban biodiversity. Helsinki’s programs focus on encouraging residents and cooperatives to collaborate in property and waste management, with municipal guides and practical steps for implementation. Overall, although housing cooperatives remain a modest segment of Helsinki’s housing market, municipal policies are increasingly designed to foster their growth and contribution to urban diversity and sustainability.