Student housing in Finland reached a record 97% occupancy rate in 2023, marking the highest level since national tracking began in 2016. According to the Finnish Associations of Student Housing Organisations (SOA), this surge highlights an ongoing imbalance between the increasing number of students and the limited expansion of housing supply.
The trend, which began during the Covid-19 pandemic, has continued to accelerate. In 2020, the occupancy rate stood at 93.5%, already considered high by sector standards. SOA Executive Director Lauri Lehtoruusu noted that “since the coronavirus era, a new record has been set each year. This shows the growing demand.”
Financial pressures reinforce housing needs
The heightened demand is not only a result of student population growth but also a consequence of shifting economic conditions. As of August 2025, students in Finland will no longer receive general housing allowances. Instead, they will be transitioned to a student financial aid housing supplement, which is expected to reduce monthly support by €60–100.
This change will increase financial pressure on students, making non-profit student housing—often the most affordable option—even more sought after. “When finances are tight, people are more likely to apply for student housing and hold on to affordable housing,” Lehtoruusu explained, anticipating yet another record in the coming year.
Student housing construction slowed by cuts to state support
While demand increases, the supply of student flats is not keeping pace. SOA warns that recent cuts to state construction investment grants are stalling new development projects. This stagnation risks compounding the housing shortage in cities like Tampere and Helsinki, where university enrolment is steadily rising.
SOA’s member organisations, which collectively manage over 45,000 rental apartments, rely on public funding to expand and maintain infrastructure. Most of these apartments are state-subsidised and managed by non-profit bodies linked to municipalities, student unions, or educational foundations.
Student housing cost-based model keeps rents stable
Despite the scarcity, the high occupancy rate offers one silver lining for current tenants. Because student housing in Finland operates on a cost-based rental model, fuller buildings mean lower per-unit costs. As Lehtoruusu emphasised, “when buildings are full, there are more people to share the costs so rents stay in check.”
Still, with student income shrinking and demand rising, the sector faces mounting pressure to find long-term solutions that balance affordability, access, and sustainable development.
