Reports say that the number of new homes built has dropped to its lowest level since the 1940s.
Bloomberg reported on Tuesday that the number of new homes being built in Finland has dropped to levels not seen since World War II. This news could be better for the housing market there.
The number of new homes built this year has dropped by more than half, from over 37,000 in 2022 to about 16,000. This information comes from the Confederation of Finnish Construction Industries.
This year, the Finnish construction business is expected to drop by 10%.
“Because of the collapse of housing production, the number of finished apartments could fall to the level of the 1940s in the next couple of years,” the building group said in a statement. As interest rates and costs have increased, consumers and investors have frozen their demand for new apartments and government-funded housing construction.”
The top economist for the confederation, Jouni Vihmo, says that construction work in Finland will improve once the interest rate outlook stabilizes. He also said that for the housing market to improve, the number of new homes would have to go down, and the number of older homes would have to go up.
The economist also said that up to 30,000 jobs could be lost soon in Finland’s building industry, which employs about 160,000 people.