An alarming report has revealed that Helsinki City Housing Company (Heka), the largest lessor in Finland, has 1,500-2,000 vacant rental units while 10,000 people are waiting for apartments. This mismatch suggests ineffective application procedures. Vacant units have been found in various locations, some remaining vacant for up to two years after renovation.
Heka, with 54,500 rental apartments, is losing out on significant revenue due to vacancies, amounting to a million euros monthly. Rising interest rates have added financial strain to the company’s three-billion-euro debt burden. Despite rent hikes, Heka’s rents remain lower than average in Helsinki.
The selection of tenants is handled by the city’s Urban Environment Division. A growing number of applicants have been rejecting offers, leading to a higher vacancy rate. The drop in applicants can be attributed to a healthy supply of private rental units and cuts in housing allowances.