In Finland, the housing construction sector faced significant challenges last year, as new completions fell to 19,852 units, which is an eight percent decrease compared to the previous year, according to Statistics Finland. Additionally, the number of building permits issued for new housing units dropped by 13 percent to 16,266 permits, indicating a downturn in construction activity. Despite the volume of construction permits being granted for a total of nearly 31 million cubic meters in 2025, the housing market remains sluggish amidst shifting buyer preferences towards existing apartments rather than new builds.

Juho Keskinen, head economist at Hypo, commented on the state of housing construction, noting that the number of permits being sought is low as the growth in housing sales is currently focused on existing apartment units. The outlook for housing construction appears to be bleak once again as last year saw housing starts fall below 17,000 units, which is the lowest figure recorded since the late 1960s in the statistical history of the country. This trend poses potential challenges for addressing housing shortages in various regions.

The persistent low activity in residential construction continues to be influenced by the lingering impacts of the COVID-19 pandemic. With builders operating at half capacity, and as economic factors play a significant role in deterring investment in new housing developments, there are concerns that these trends could lead to further complications in the housing market and impact the overall economy in Finland.