Helsinki rental prices have taken a historic turn. For the first time since Statistics Finland began tracking private-sector housing in 2015, rental costs in the capital region have actually declined instead of rising.
Between April and June 2025, private rents in the Helsinki metropolitan area dropped by 0.3 percent compared to the same time last year. Meanwhile, rents in the rest of the country increased by 0.9 percent.
Martti Korhonen from Statistics Finland called the shift surprising. He explained that this decline breaks a pattern of slow but steady rent increases that has gone on for years. Until now, Helsinki rental prices were rising at a rate of 0.5 percent or less every year. No previous quarter had shown any decline since the current data system was put in place.
The biggest dip happened in Vantaa, where rents dropped 0.8 percent across all property types. Espoo and Helsinki also recorded smaller declines, mostly in studio flats. Larger apartments stayed stable in most parts of the capital region. Rovaniemi, on the other hand, saw the largest increase in rents among major cities, with a 2 percent rise.
One factor behind the fall is a policy change coming in August. Many students will lose access to the general housing allowance. This has already started pushing students toward cheaper flats or shared living spaces, especially in cities like Helsinki.
Korhonen said the changes may affect cities that already have too many expensive, newly built rentals. As students exit those markets, demand shifts, and prices begin to react.
The fall in Helsinki rental prices goes against the national trend. In most other cities and towns, rents are still moving upward, closely matching rising living costs.
Outside Helsinki, demand for affordable rental units remains high, especially in central areas. There are still not enough affordable homes for the people who need them, and that continues to support higher prices.
What to Expect This Autumn
The drop may seem small, but it signals change. A mix of increased housing supply, new rules for student subsidies, and shifting demand may all be behind the trend.
Whether it’s a short-term drop or the beginning of a deeper shift will become clearer in the autumn. The next update from Statistics Finland is due in October.
