Pori, Finland, saw no new apartment buildings constructed last year for the first time since the 2000s, indicating a significant halt in construction activity across the country.
In Pori, Satakunta, there has been a notable absence of construction activity, particularly concerning apartment buildings, as cranes are missing from city sites. This marks a significant development since no new apartment units were completed in Pori last year, which is a stark contrast to the peak year of 2017 when over 500 apartment units were built in the region. The nationwide trend reflects a similar decline, with Finland seeing a drastic reduction in new apartment constructions to around 31,000 last year, compared to over 90,000 during the boom years of the 2000s.
The ongoing decline in construction has been evident for several years, particularly in growing urban centers. For instance, while cities like Tampere experienced rapid growth in the number of small apartments being built, they are now facing an oversupply. The latest reports suggest that fears of an impending housing shortage are not materializing, indicating a complex dynamic in the housing market that may involve affordability issues and supply adjustments.
Several factors have contributed to this stagnation in construction activities. The downturn began during the COVID-19 pandemic, further aggravated by subsequent geopolitical issues, including the war in Ukraine. These intertwined challenges have created a climate of uncertainty, leading to a freeze in new construction projects throughout Finland as market actors reassess their strategies in the face of changing economic conditions.
