SATO Corporation, Press release 13 June 2024 at 1:40 pm
The busiest season of the Finnish rental market is here, peaking in July. The summer rental seasons vary by region, with rental spikes concentrated particularly in large cities where regional differences can be significant. It's not just students on the move during the summer, SATO reports.
Data collected over several years by SATO, one of Finland's largest housing providers, shows that in Turku a busy rental season typically begins right at the start of June. By mid-June, the wave reaches central Helsinki and Tampere. In these three hot rental market areas, housing demand remains high until the end of August.
"June is an ideal time to confirm a rental decision, as the best options might unfortunately slip away during the peak season in July, especially in the most popular areas. Generally, however, it is currently the tenant's market,” reminds Laura Laamanen, SATO's Chief Commercial Officer.
Significant variation within Helsinki
Interestingly, regional variations, especially within the Helsinki Metropolitan Area, (HMA) are considerable. For example, in the areas of Metro Espoo, West Helsinki, and East Helsinki, only a slight peak in demand for rental apartments is observed during the summer, while in the Rail Espoo area, there is practically no peak season. In West Vantaa, there is only a short summer season in July.
"There are several reasons for these regional differences. Proximity to workplaces and services, as well as good public transport connections, remain important attractions for students and other young apartment seekers who are prominently on the move during the summer months," says Laamanen.
Students and young workers on the move during summer
Summer means a new beginning for many, whether it’s a new degree place or a new job. It’s also a time when contemplating and implementing life changes is more natural than in the dark winter months. Additionally, school holidays allow families a smoother move so that children can adapt to their new environment before the next school year begins.
As in other times of the year, employed individuals are the largest group of applicants during the summer. In July, the proportion of student applicants increases significantly, by up to one-third. It is also noteworthy that during the summer, applicants among workers and professionals are typically a few years younger than at other times. For example, workers seeking rental apartments in July are on average five years younger than outside the peak season.
"The effects of changes in housing allowance are not yet clearly visible, but over time, they may manifest as increased demand for smaller and more affordable apartments or an increase in the number of people changing apartments," Laamanen notes, adding that renting offers stability and predictability of expenses, especially for those just starting their independent lives: "There are no unexpected expenses as in homeownership, for example, when heating is included in the rent."
Good transport connections, services, and maritime locations are always appealing
The location of a rental apartment is one of the most important criteria for applicants. Throughout the year locations close to good public transport connections and services consistently interest those looking for a rental home. In the HMA, rental apartments located particularly along the metro and rail lines are always in demand. At the end of 2024, SATO will complete 156 new rental homes in Finnoo, Espoo. The maritime residential area is conveniently located along the Länsimetro metro line.
"Around a thousand apartments have already been completed for residents in the area, and homes for about two thousand more are currently under construction. Additionally, rental homes offering proximity to nature, maritime atmosphere, and easy metro access can be found in eastern Helsinki districts like Vuosaari and Puotila," Laamanen hints.
For more information, please contact
Laura Laamanen, Chief Commercial Officer, SATO Corporation
p. +358 201 34 4360, firstname.lastname@sato.fi
SATO Corporation is an expert in sustainable rental housing and one of Finland’s largest rental housing providers. SATO owns more than 25,000 rental homes in the Helsinki Metropolitan Area, Tampere and Turku.
SATO aims to provide an excellent customer experience and a comprehensive range of urban rental housing alternatives with good access to public transport and services. We promote sustainable development and work in open interaction with our stakeholders.
SATO invests profitably, sustainably and with a long-term view. We increase the value of our assets through investments, divestments and repairs. www.sato.fi/en.
