MDI coordinated a study on housing policy: No new tricks but more comprehensive support for existing instruments

Housing prices and rents in Helsinki metropolitan area have risen sharply due to population growth and rising average income levels. The best way to restrain the growth of prices and rents is to increase housing supply in all growth centers nationally. Too small plot reserve has formed the worst bottleneck for housing construction in the 2000s. General plans and new major transport solutions are enabling more sustained planning and buildup of the plot reserve.

There were two major purposes for the study:

1. to inquire the questions related to housing construction and high price levels on Helsinki metropolitan area, and
2. to assess the problem areas and effectiveness of housing subsidies.

The questions on housing policy have remained the same for decades. The main finding of the study was that the instruments implemented in 2000s have started bearing fruit. Therefore, there is no need for radical changes, but successful policies and instruments need more support. In addition to MDIs own team, Seppo Laakso and Henrik Lönnqvist participated in the research. The study was commissioned by the audit committee of the Parliament of Finland. Eighteen recommendations were given, and realization of these will be monitored in the coming years.

The study is available as a report (in Finnish) in Parliament’s online service.

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