FINNISH STUDY SHOWS RENTING MORE EXPENSIVE THAN OWNING HOUSES

A new study shows that renters in Finland use a greater share of their income on housing than homeowners, the Finnish news service Yle reported.

Housing is often considered expensive in Finland, but researchers at Turku University found that it generally eats up less than a fifth of income, which is below the European average.

In Finland, renters spend about 32 percent of their income on rent, while the corresponding figure for home owners is 15 percent. People with low incomes who rent in the private market feel the squeeze the most, researchers found. In 2018, nearly half of low-income households in Finland spent 40 percent of their earnings on rent--a figure only surpassed by the United Kingdom.

The government recently commissioned a report investigating how Finnish housing costs compared to other European countries. While there was some good news, researchers also found that renters in Finland pay a much higher share of their incomes to keep a roof over their heads than home owners.

"Renters (in Finland) use a much bigger proportion of their income on housing than renters in other countries," said sociology Professor Hannu Ruonavaara, who led the study. Researchers also found that while people in all income brackets rent in other countries, renting in Finland is concentrated among low-income earners. Anne Viita, executive director at the Finnish Tenants organization, said the problem lies in housing being perceived as a commodity and not a basic right. "Reasonably priced housing should be available to everyone," she said.