OP Uusimaa Home loan demand and home sales have increased, especially in the Helsinki Metropolitan Area

The number of home loans granted in January–May grew by 29 % compared to the same period last year and was at its highest level since September 2022. The average size of granted home loans increased by 8 % in Uusimaa compared to a year earlier, and in May stood at EUR 197,000. OP Uusimaa's market share of all new home loans granted in Finland has increased since last year, now standing at 14.5 %.

The number of granted home loans has increased particularly in Espoo among the municipalities of the Metropolitan Area, whereas in the surrounding municipalities, significant growth has taken place in Hyvinkää, Järvenpää, Sipoo and Tuusula.

- We have noted this spring that loan promises made during the previous year are now being realised as disbursed loans, meaning that many people have finally found a new home, OP Uusimaa's Senior Vice President, Financing for Personal Customers Riikka Kangas

Home sales have picked up in the Helsinki Metropolitan Area in particular

Home sales in Uusimaa have picked up in January–May, with a growth of 22 % compared to the corresponding period in 2024. Home sales growth is now faster in the municipalities of the Metropolitan Area than in the surrounding municipalities, with a growth of 24 % versus 19 %. 

- By municipality, the increase was particularly high in Espoo and Kauniainen, but the 25 % growth in Vantaa is also great to see, OP Koti Uusimaa's CEO Satu Astala

Hyvinkää continues at the top of home sales among the surrounding municipalities. The sales figures of Kerava and Kirkkonummi have increased significantly compared to last year, the increase being over 40 % in both municipalities.

Sales of studio apartments in apartment buildings picked up

In the surrounding municipalities, the number of sales of apartments in apartment buildings increased by 14 % in January–May 2024. The sales of studio apartments has seen particularly strong growth, by as much as 28 %.  The number of studios apartment sales has increased especially in Kerava and Lohja.

In the Helsinki Metropolitan Area and in Helsinki districts with traditionally high numbers of studio apartments, sales have increased compared to last year. For example in Kallio, sales have increased by 32 % and in the Alppila-Vallila area by as much as 50 %.

- In the Metropolitan Area, the prices of studio apartments have come down considerably since 2021. With a high supply of studios at prices that are still low, it is predictable that investors will also return to the market, Satu Astala forecasts. 

The Carrie Bradshaw index – how high must a single dweller's income be to rent a studio apartment?

The Carrie Bradshaw-index‍ of the Economist magazine describes the amount a single household must earn to make renting a studio apartment affordable. In practice, the index measures how high income needs to be so that renting a studio apartment does not exceed 30% of income.

Based on a report* by OP Financial Group's economists, this amount is highest in Helsinki, where a net income of EUR 2,600 is required to rent a studio apartment accounting for less than a third of income. The required amount of net income is also above EUR 2,000 in other Metropolitan Area municipalities. In Uusimaa, the required net amount would be EUR 2,300 in Vantaa, but the median income in the city is just above EUR 2,200.

- In other Uusimaa municipalities, renting an apartment takes up clearly less than a third of the median income of single-person households, Riikka Kangas says.

There are slightly over 1.3 million such single-person households in Finland. This number constitutes 47 % of all households. Just over half of people living alone are renting.

*The review uses the average rent of new tenant relationships in non-subsidised studio apartments. The size of the surveyed studio apartment is 30 square metres in all areas, corresponding to the size of the average Finnish studio apartment. The income used is the disposable monetary income in each region.

The municipality-specific data can be found below: