The number of elderly people in Finland is growing rapidly, and efforts are being made to keep them at home for as long as possible. According to Aleksi Randell, CEO of the Finnish Construction Industry Association (RT), new alternatives and implementation methods for community housing and senior housing must be developed in order to meet the needs of the aging population.
The elderly need more housing because their number has grown sharply and institutional housing has decreased, according to VTT's Housing Production Needs Study. Twenty years ago, eight percent of people over 80 lived in institutions, but in 2023, that number was only three percent.
The trend is growing: this year there are approximately 176 people in Finland who have turned 000. According to the forecast, there will be almost twice as many in 85. At the same time, the aim is to keep the elderly in their homes for as long as possible and to further reduce institutional living. In the reform of the Social Welfare Act, traditional care housing was replaced by communal living.
In more and more apartments, elderly people live alone.
Living alone also becomes more common with age, which increases the need for housing. While Finland currently has an average of 51 apartments per 80 people, the ratio for people over 70 is over XNUMX apartments per XNUMX people. In addition, older people often live alone in single-family homes or in apartments that are otherwise unnecessarily large.
"We need to lower the threshold for older people to move to a smaller, more accessible apartment near services that better meets their needs. We also need more community in housing. At the same time, apartments would be freed up for use by younger age groups," Aleksi Randell toteaa.
The growing need for community housing for the elderly has also been noted in the report of the state-supported housing development working group set up by the Ministry of the Environment. According to Randell, the issue is acute and solutions are needed without delay. In order to get enough housing projects suitable for seniors underway, effective ways must be created to combine private money and social support.
"The state has sharply reduced investment subsidies for special groups in housing construction. It has also been proposed that support for community and accessible housing projects be targeted at areas losing population. However, with the current cost structure and even moderate return expectations, the private developer's financial equation often does not work in community housing projects, even in growth centers."
Supported community living and privately financed senior housing in the same block
Southwest Finland is an example of a new type of model that combines both publicly funded senior housing and state-supported community housing in the same block. Community housing is defined by law as being aimed at those who need help to manage at home, but do not need 24-hour assistance.
A long-time entrepreneur in the real estate and construction industry Jari Rastas leads the Priima-Yhtiöt group, which operates as a real estate developer, developer and investor. Its expertise includes military real estate projects, senior housing concepts, and project development and financing arrangements that combine the public and private sectors.
"Our concept is apartment-style living at home, where there are at least two houses in the same block in a central location in the community: one with communal rental apartments and the other with privately financed owner-occupied or rented apartments. The law defines communal housing as rental housing. The blocks can be larger, but comfort is important," Rastas describes.
Priima companies have projects underway in the city centers of Parainen and Mynämäki. Similar projects are also planned for Turku and a couple of other locations.
"The apartments in both types of houses are clearly more spacious than the minimum requirement of 20 square meters. They are mainly studios or small two-room apartments of over 30 square meters. There are also three-room apartments in senior housing. We take into account the fact that people do not want to move into small cubicles."
Rastas believes it is important that houses and apartments are high-quality, real homes that do not feel institutional. According to Rastas, their solutions include small, unobtrusive things that make them suitable for the elderly, such as integrated railings, easy-to-use fixed furniture, and lowered steps.
The houses are accessible and, if necessary, suitable for regular living later, unlike typical sites intended for care homes.
Private interest and public interest must be reconciled
Community housing buildings always include a service provider who is responsible for organizing guided community activities and usually also for food services.
"In order for the provision of services to be profitable, a sufficient resident base is needed. Therefore, it makes sense to have at least about 100 apartments in the same block whose residents can utilize the services."
In order for projects to get off the ground at all, Rastaa believes they must also include the investor's perspective. It is a big challenge, especially in more remote locations, to get investors involved. Communal housing should be built comprehensively.
"The 10-year interest subsidy model for state-supported housing construction should be modified to a version suitable for these projects. It would bring stability to the projects, and the lighter conditions applied would help attract smaller investors as well," says Rastas.
"The use of investment grants from special groups should be made possible for these projects. The application for this could be set for a fixed period, even for three years starting this year, in order to get projects underway. It would be good if it covered 20–25 percent of the project. This investment would return many times over in benefits."
Rastas proposes that a working group be assembled of key actors to resolve these issues and reconcile different perspectives.
"Community housing projects will not be created entirely on market terms. The need for housing suitable for the elderly is so huge that all kinds of models are needed. This is a national and joint effort," Rastas emphasizes.
Rastas says he apparently inherited his interest in senior housing from his mother.
"My mother worked at the local community center. As a little boy, I often went there, running along the corridors and talking to the grandmothers and grandfathers. That's probably why this topic is natural to me."