In the present economic situation, almost all new housing construction in the country is being backed by the Housing Finance and Development Centre of Finland (ARA).
ARA's main task is to finance state-subsidised rental housing production. The Centre has also other obligations, such as making grants for housing repairs and supervising grants of state guarantees on loans for owner-occupied housing.
Last year construction started on 4000 new ARA-backed sites. Already this spring, there have been 2500 new starts.
Director General Hannu Rossilahti says that production could rise to as high as 10,000 new apartments.
There has been an influx of applications for subsidies. The west-coast town of Kokkola will be seeing a new project for the construction of nearly 100 apartments, while construction lots are being sought in Seinäjoki and Vaasa.
Commercial housing construction, meanwhile, has collapsed. Financing for commercial ventures is difficult to come by, and it is expected that non-subsidised housing constructed this year may be as low as 1,500 units.