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Rents to wages disparity drives lifestyle change for city-dwellers

Rental rises are outpacing incomes at an even pace across the whole country. Statistics Finland announced yesterday that rents have continued to rise – and more and more markedly – despite Finland's economy remaining in the doldrums. This makes the financial situation tougher for those who may already be suffering, particularly in the larger cities.

Wage and rental price growth.
Image: Yle Uutisgrafiikka

The annual rental market surge has begun, as students spring into action searching for affordable places to live. However, this year it’s overshadowed by a growing disparity between rental prices and wages.

One such student is Ricardo Rodriguez, who's making the move from Karjala to Helsinki for his studies.

"I think it's quite expensive," says Rodriguez. "Where I'm from it's really cheap, but there's nothing you can do. This is such a big place, of course there's going to be a bit of a price difference."

Rise of the share house

Some people are embracing something that's a more recent trend in Finland – they’re renting larger, more reasonably priced properties and sharing them with others.

Just a few years ago, the word "commune" used to be the more prevalent Finnish term for describing that mode of living – something that sounds a little like a kibbutz to the foreign ear. For space loving Finns, the very concept perhaps had somewhat bohemian – or even Soviet – overtones. However, lately the friendlier sounding notion of a “kimppa kämppä” - or share house - is gaining some traction, and not just among students. It’s an indication that  economic hardship may also be bringing cultural change to the bigger cities.

Breaching the pain threshold

Meanwhile, other city dwellers are simply finding they can no longer afford to live in the big smoke, prompting them to turn their backs on expensive studio flats and other dwellings in the city. For many, the only affordable option is to live out of town and commute for work or studies.

Experts agree that Helsinki has breached the pain threshold. More and more people are voting with their feet -- or more specifically, their travel cards.