Published: 04/06/25 | 14:12
The demand for student accommodation in Finland is rising sharply driven by a growing student population, financial pressures and a decline in government construction subsidies.
According to the Finnish Association of Student Housing Organisations (SOA) the student housing occupancy reached an unprecedented 97 percent last year which is the highest rate since tracking began in 2016. This means fewer units are available than ever before.
“The occupancy rate has broken records annually since the COVID-19 period which highlights a clear increase in demand,” said SOA Executive Director Lauri Lehtoruusu in a press release. In 2020, the occupancy rate was 93.5 percent.
The surge in demand is largely attributed to both the rising number of students and their limited financial resources. Starting this August, students will be moved from the general housing allowance system to a student-specific housing supplement under the financial aid programme which will result in a monthly reduction of around 60 to 100 euros in housing support for many.
Lehtoruusu noted that student housing typically offers the most affordable rental options. “When budgets are tight, students are more inclined to apply for these cost-effective accommodations and keep them for longer. It’s likely that this year will break another occupancy record,” he said.
While high occupancy can help keep rents low as costs are shared among more tenants, SOA pointed out that the reduction in state investment grants is hampering the construction of new student residences which is worsening the housing shortage.
SOA represents 21 non-profit student housing providers which are owned by entities such as municipalities, student unions, associations and foundations. Collectively, these organisations manage over 45,000 rental units, the majority of which are supported by government subsidies.
