Student housing crisis: Government, do you want to leave students without homes?

In 2022, an eight-year housing development programme was published, setting a target of building around 10,000 new student homes. In addition, a 2018 study commissioned by the Ministry of Environment estimated that around 6 000 new student homes would be needed over the next decade. The shortage of student housing is serious.

The current government programme plans to cut €47 million from investment grants for special groups, which would lead to a halt in the construction of housing for special groups, such as student housing, in the midst of the most severe construction recession in decades. This would jeopardise both the supply of student housing and the affordability of its rents. Investment grants are vital for the development of the supply of student housing in Vaasa and Finland to meet the growing demand.

New housing projects have already fallen to financial crisis levels and new building permits below that. A wave of bankruptcies has already begun in the sector. In state-subsidised housing, relatively small financial inputs lead to significantly larger investments than they actually represent. In most cases, the tax effect of these investments is already greater than the state's contribution.  A sudden drop in the level of investment aid will be crucial to new student housing projects for years to come. This, combined with the planned cuts in student housing subsidies and high interest rates, is an impossible equation for students starting out on their own. This year, Vaasa has faced an unprecedented housing crisis. Thousands of new students have arrived in Vaasa and there is not enough housing for everyone, whether from VOAS or from other providers. 

Admission rates to higher education institutions are constantly increasing. The University of Vaasa has ambitious targets for increasing their admission rates as well. If this trend continues, Vaasa will not have enough accommodation for all new students starting their studies. How do we provide housing for those who need it, in line with the government programme, if we are already running out? In Vaasa, as in many other Finnish student cities, students are the heart of the city. The will to provide modern housing solutions that meet the needs of students is also present in VOAS. So let's give service providers the opportunity to serve students.
 

Sara Güven, the Student Union of the University of Vaasa, Campus and Municipal Affairs

Laura Koivisto, the Student Union of the University of Vaasa, Social affairs

Jaber McBreen, VOAS, Chair of the Board

Marko Ylimäki, VOAS, CEO