Apartment viewing. Photo: Anni Savolainen / Str / Lehtikuva
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Landlords in the Helsinki region say rent prices are no longer the main obstacle to filling vacant apartments. The problem, they argue, is a shortage of reliable tenants.
Juha Parviainen, a property investor with two decades of experience, said one of his apartments in East Helsinki has remained empty since March, despite a 10 percent drop in rent.
“I’ve already lowered the rent, but it’s still hard to find a suitable tenant,” Parviainen said. “It’s not the price anymore.”
He holds regular viewings to attract tenants but said attendance is low and often unreliable.
“There might be five showings booked, and only one person shows up, if that. The rest don’t even cancel,” he said.
Figures from Statistics Finland show that in the second quarter of 2025, rents for privately financed apartments in the capital region fell by 0.3 percent compared to the same period last year. This marks the first recorded year-on-year drop in rent prices in the area since 2015. Rents elsewhere in Finland increased by nearly one percent during the same time.
The decrease was most noticeable in studio apartments across Helsinki, Espoo and Vantaa.
Martti Korhonen, chief actuary at Statistics Finland, said the decline is due to oversupply. “There are simply more rental flats than people who want them,” he said.
In other parts of the country, rents remain more stable due to a better balance between supply and demand, Korhonen noted.
Henri Haaksiala, a rental agent, said the market has shifted in favour of tenants.
“Just a few years ago, rental units were filled quickly. Now the competition among landlords is high, and vacancies last longer,” he said.
He added that landlords are becoming more flexible in response. “They are lowering rents, reducing deposit requirements, and in some cases offering units without any deposit at all,” Haaksiala said.
He said tenants now have more room to negotiate, and many are shopping around for better deals. “The situation is ideal for students and anyone looking for a new home. Prices are lower, and the availability is wider,” he said.
He recommended that landlords consider adjusting their expectations. “Insisting on two-month deposits isn’t practical anymore. Making small upgrades to empty apartments may also help attract interest,” Haaksiala said.
Changes to government housing support are also influencing the rental market. Starting in August, students will no longer be eligible for general housing benefit. Instead, they will return to the system in place before 2017, when housing aid came as part of student financial support.
Korhonen said the change could lead students to seek cheaper rental options.
“The impact will vary depending on the local market, especially in areas with too many or too expensive vacant flats,” he said.
HT
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Source: www.helsinkitimes.fi
