Study: 9% of residents in Finland’s major cities plan to buy a home within a year

YIT’s October 2025 Sustainable Urban Environments Barometer of 1,000 residents in Finland’s largest cities finds 9% plan to buy a home within a year (rising to 17% among families with children), with demand shifting from studios toward larger homes as life‑changes (30%) and need for space (29%) drive purchases. Worries about housing costs are rising again—concern over repair needs jumped to 35% (from 27%), renovation costs to 17% (from 12%), and mortgage-rate concern to 20% (from 15%) even as rates fall—and 21% considered but postponed buying, most commonly for financial reasons (38%) or lack of suitable stock (27%). Looking 2–5 years ahead, 39% prefer owner-occupied housing versus 26% renting, underscoring continued investor/developer demand for larger, higher‑quality and affordable owner-occupied units, although cost and renovation anxieties may constrain near‑term market recovery.

Analysis

YIT's October 2025 Sustainable Urban Environments Barometer of 1,000 residents in Finland's largest cities reports 9% plan to buy a home within a year and 17% among families with children, while demand is shifting away from studio apartments toward larger units. Primary purchase drivers are changes in life circumstances (30%) and need for more space (29%), with 16% each motivated by higher quality or more affordable options, underscoring heterogeneous demand across price and product tiers.

Concerns about housing-related costs are rising: energy worry eased to 41% (from 48%) but concern over repair needs increased to 35% (from 27%), renovation costs to 17% (from 12%), and mortgage-rate concern rose to 20% (from 15%) despite falling rates. Twenty-one percent considered but postponed buying in the past year—38% for financial reasons, 27% due to lack of suitable homes and 18% citing global uncertainty—indicating near-term purchases are constrained by affordability and stock availability.

Looking two to five years, 39% prefer owner-occupation versus 26% renting, with ownership valued for stability (52%), investment potential (41%) and wealth building (36%), signaling sustained medium-term demand for owner-occupied housing. For developers such as YIT (EUR 1.8bn turnover in 2024, listed on Nasdaq Helsinki) the opportunity is to prioritize larger, family-oriented, higher-quality yet affordable and turnkey units, but rising renovation/repair concerns and rate uncertainty are material near-term risks to conversion of intent into sales.

Key Decisions for Investors

• Consider increasing selective exposure to residential developers able to deliver larger, move-in-ready owner-occupied units in Finland (including companies like YIT), while favoring issuers with strong balance sheets and execution track records
• Reduce or de-risk positions concentrated in small-studio inventory or speculative, rate-sensitive projects until buyer preference shift and conversion rates improve
• Monitor mortgage-rate trajectory, consumer confidence, renovation/repair cost inflation and local inventory availability as concrete triggers to scale exposure, given 21% postponed purchases driven primarily by financial constraints and lack of suitable homes
• Use hedges or conservative financing structures to mitigate construction-cost and interest-rate risk and prioritize developers offering predictable running-cost propositions for buyers