More than 1.5 million people in Finland, or about 28 percent of the population, lived in rental homes last year, according to Statistics Finland.
The new figures represent a four percentage point increase compared to 2010, and an increase of 100,000 people since 2018.
Around half of people who reside in rented dwellings live on their own.
Younger adults are much more likely to rent than to own, according to senior statistician Mika Ronkainen.
"Renting is clearly more common than owning among young people who live independently. Renting is more common for young adults living in urban municipalities, compare to those in rural areas," Ronkainen explained.
Renting became more common after the financial crisis of 2007-08, the agency noted.
"Additionally, the number of people living alone in rented accommodations has increased, but owner-occupied housing remains almost as common across the country," Ronkainen said.
"The situation is different in cities, because two out of three single people are renters in Tampere and Turku," he said.
Meanwhile, around 3.7 million people (69 percent) lived in owner-occupied dwellings last year, according to the number-crunching agency.