Student housing in Helsinki has reached full capacity, just weeks before a significant policy shift that will reduce financial support for over 150,000 students.
Starting in August, the Finnish government will transfer students from the general housing allowance to a student-specific housing supplement. This change will cut monthly support and limit the period during which it is available.
Despite the upcoming reform, demand for student apartments in the capital region remains unchanged.
“Demand hasn’t increased this year,” said Saara Saksanen, communications manager at the Helsinki Region Student Housing Foundation, Hoas. “The capital region already sees strong demand for student housing, so even with policy changes, our numbers stay steady.”
The Ministry of Education estimates that around 156,000 students across Finland will receive less financial assistance under the new rules. In the Helsinki region, the maximum monthly housing supplement will be €296 — nearly €100 less than the cap under the previous allowance system. The supplement will only apply during months when students qualify for a study grant, generally beginning in September.
Housing demand peaks in June and July following university admission announcements. Hoas confirms that student apartment occupancy reaches 100 percent at the start of each academic year.
As the academic term progresses, some units become available again. Between August and September, Hoas expects to release approximately 3,000 apartments, which are likely to be claimed quickly by incoming students.
Contrary to earlier expectations, the new housing benefit has not yet changed student preferences for accommodation types.
Last year, Hoas CEO Matti Tarhio suggested that the reform could lead more students to apply for shared flats to save money. However, current application data shows that demand for both studios and shared units has remained stable.
“When budgets tighten, students appear to cut costs in other areas first,” said Saksanen. “Many also take on part-time work to maintain their standard of living.”
Still, Hoas believes the full impact of the policy shift may not be visible until later in the year.
Saksanen pointed to a noticeable change last winter when fewer students chose to move out.
“People tend to stay put when their finances are uncertain. The decision to move becomes more difficult when your income drops,” she said.
Hoas is also preparing for the possibility of more payment defaults.
“That’s our biggest concern,” Saksanen admitted. “It’s hard to see students fall behind on rent, especially when the rents are already below market levels.”
The new student housing supplement varies by region and is capped based on rent levels. In high-cost cities like Helsinki, many students will need to cover a significant gap between the capped benefit and actual housing costs.
Despite this, studio apartments remain the most sought-after option among students.
“Privacy and quiet are important to them,” Saksanen noted. “But they’re not necessarily after city-centre locations. Most are looking for affordable, well-connected areas with easy access to their universities.”
