According to Nordea economist Juho Kostiainen, the forecast for Finland's housing market suggests that prices will see a slight decrease of 1.5% this year due to a combination of economic downturns and rising unemployment. However, the outlook for next year appears more optimistic, with a potential increase in prices by 1.5%, particularly in larger apartments as the oversupply of smaller units is projected to decline at a slower pace. This pricing trend aligns with the expected income developments of Finns, especially in growing urban areas, where housing demand is anticipated to rise.

The ongoing challenges in the housing market are attributed to several factors, including the long-lasting oversupply of housing stemming from excessive construction of supported apartments, combined with cuts to housing benefits, which have diminished the demand for smaller living spaces among young people. Kostiainen points out that these dynamics have contributed to an extended sluggish phase in the housing sector, exceeding earlier predictions. He highlights that in regions facing population decline, a continuation of price reductions is to be expected as the local market struggles to adjust.

The report also raises concerns about external factors that could impact the housing market, notably the ongoing conflict in Iran, which Kostiainen identifies as a potential risk. The economic uncertainties tied to geopolitical events could ultimately influence both national and local housing markets, emphasizing the complex interplay of domestic economic conditions and international affairs on housing price trends.