A growing Helsinki wants to boost housing construction

Currently, Helsinki has a sizable planned land reserve and plenty of plots ready for construction. Helsinki wants to ensure that the preconditions for building on existing plots are in place when construction starts to pick up.
Kaupunkinäkymässä kerrostaloja ja jalankulkijoita.
A follow-up report on the Programme on Housing and Related Land Use, which guides long-term housing planning in Helsinki, has been completed. Photo: Vesa Laitinen

Helsinki wants to promote opportunities for the production of owner-occupied housing, especially in suburban areas. The promotion of owner-occupied housing is one of the measures of the Implementation Programme on Housing and Related Land Use (AM programme). A follow-up report on the AM programme, which guides long-term housing planning in Helsinki, has been completed.

Helsinki currently has a sizable planned land reserve and plenty of plots ready for construction. The planned land reserve can accommodate a calculated approximately six years of construction, or about 42,000 dwellings, and there are currently plots ready for the construction of about 19,000 dwellings. Helsinki wants to ensure that the preconditions for building on existing plots are in place when construction starts to pick up.

Ways to improve the conditions for housing production include flexible planning and plot pricing to influence construction costs, and the possibility of phasing projects. 

In 2025, just over 4, 000 dwellings were completed in Helsinki, while the target was 7, 000 dwellings per year. Construction has been held back by factors such as rising interest rates, economic uncertainty and a slow housing market. At the same time, the population of Helsinki is growing, increasing the need for new housing. 

Suburban regeneration brings new housing and services

Helsinki has also continued to invest in suburban regeneration areas. Suburban regeneration in different parts of the city facilitates a holistic approach to regeneration. Urban planning and infill will be developed in the areas along with improvements to the environment and services, such as schools, daycare centres and parks.

The suburban regeneration areas are Malmi, Mellunkylä, Meri-Rastila and the area of Malminkartano and Kannelmäki. Continuing suburban regeneration is the most effective way to promote housing and attractive owner-occupied housing, in particular, in these neighbourhoods.

Investment plans have been drawn up for the suburban regeneration areas up to 2035, including urban infill, school renovations and park upgrades.

The Implementation Programme for Housing and Related Land Use (AM Programme) guides the long-term planning of housing in Helsinki. The programme will run for four years, and its progress will be reported on annually to the City Council. The current AM programme was approved by the City Council in August 2024. The City Council discussed the follow-up report on the programme on 27 May 2026.