30.10.2012

Construction of 27,000 new homes started in Finland this year

Increasing number of one and two person households has resulted in a shortage of smaller homes.

Construction work will start on about 27,000 new homes in Finland during 2012, according preliminary data compiled by the Confederation of Finnish Construction Industries. From the total about 16,500 are apartments or terraced housing.

The outlook for new home construction remains uncertain but there are also factors that boost demand for new homes, according to Bo Salmén, Chief Economist of the Confederation of Finnish Construction Industries. For example, population growth and immigration are increasing migration flows within Finland and the high level of rents is encouraging more people to consider home ownership rather than rented accommodation.

According to Salmén, due to the increasing the number of one and two person households, there is a shortage of small homes in the country. VTT Technical Research Centre of Finland estimates that 25,000 – 30,000 new homes should be built in Finland annually.

Source: Keskisuomalainen