The popularity of rental housing is growing, but still the majority of young adults would prefer to live in an owner-occupied home in the future.
The popularity of owner-occupied housing among young people is high not only in Finland but also in Sweden, Norway and Denmark. This is evident from a recent survey surveying the housing wishes of young people in the Nordics.
The majority of young Finns, no less than 94 percent, would live in an owner-occupied home ten years from now, if given the choice. The most desired form of housing would be a single-family house or terraced house.
CEO of Rakennusteollisuus RT Aleksi Randell considers it good news that the traditional dream of owning a home remains at the top of the young people's wish list, because it can be seen as goal-oriented household management. The study revealed that the vast majority of young Finns are preparing to realize their housing dream either by saving money or by seeking a well-paid job. The housing savings bonus system ASP, aimed at first-time home buyers, has significantly increased its popularity this decade.
In neighboring western countries, the tradition of owner-occupied housing is even stronger than in Finland. In Sweden, young people have found themselves in a tight spot when house prices rose sharply due to too little housing production in recent years. In turn, Sweden's tightly regulated and dysfunctional rental market has removed incentives from building rental apartments and is driving young people into owner-occupied housing.
- We have not made any short-sighted political decisions that would have created a crisis in the housing market. Hopefully we won't see those either, says Randell.
According to Randell, the most important thing is the balance of supply and demand. Municipalities' land use and zoning solutions play a key role in ensuring that housing options that meet young people's wishes do not fall out of the reach of those who seek them. Young people hope for a smooth everyday life with good transport links, study and work places, and services, reminds Randell.
In the light of the research, young Finns are satisfied with their housing situation. As many as 87 percent consider their current housing costs to be reasonable considering the location and features of the apartment.
- Social decision-making must remember the needs of young people who are becoming independent. One of the most important is enabling affordable housing also in growth centers, says Randell.
The study also revealed that young Finns move out of their childhood home earlier than other Nordics.
Randell hopes that the housing market will continue to offer options that young people starting their independent lives will value. Randell adds that an effective support system for housing is necessary and taxation should be developed to be even more encouraging. First-time home buyers are already exempt from the transfer tax. Removing it completely would make it easier for owner-occupiers to move in later, for example for work.
The survey was carried out on behalf of Novus, Sveriges Byggindustrier BI and in cooperation with Rakennusteollisuus RT and other Nordic associations in the field. A total of 1 people responded to the survey, of which 914 were from Finland. The respondents are between the ages of 300 and 18. The answers are weighted according to population and regional structure.
Novus' English summary of the results of the Nordic surveya
Read Merja Vuoripuro's blog: Finland beats its richer western neighbors in the housing situation for young people 5–0
More information
Merja Vuoripuro, director of communications, tel. 040 587 2642, first name.surname@rakennusteollisuus.fi