Third year with more than 5,000 completed dwellings
In 2023, a total of 5,507 dwellings were completed in Espoo. That is almost as many as in the record year of 2022, when 5,625 dwellings were completed. This is the thirds year in a row to mark more than 5,000 completed dwellings.
Of the completed dwellings, 2,364, or 43%, were located in non-subsidised all-rental buildings. ARA rental dwellings amounted to 626, or 11%. No right-of-occupancy dwellings were completed. Non-subsidised owner-occupied dwellings amounted to 2,517, or 46%.
Construction focused on blocks of flats. Of the dwellings completed last year, 787 dwellings were in detached houses.
Number of building starts cut in half from peak years
In 2023, the construction of 2,848 dwellings started, which is clearly less than in previous years. In 2022, the construction of almost 4,000 dwellings started, and in the two previous years, there were more than 6,000 starts per year.
In Espoo, the last few years have been record-breaking in terms of housing construction and the targets for housing production – 3,300 dwellings per year – have been exceeded.
“During the MAL agreement period 2020–2023, an average of 5,170 dwellings per year were completed in Espoo,” says Housing Manager Anne Savolainen.
House-building targets are defined in the MAL agreement on land use, housing and transport between the state and municipalities. The current MAL agreement runs from 2020 to 2031.
“Until 2015, the average number of residential building starts in Espoo was approximately 2,500 dwellings per year, so the number of building starts was still at a good level last year. If dwellings are built at a record pace and the population grows rapidly, it causes challenges in the organisation of services. Therefore, it is good that the number of building starts has momentarily decreased,” says Anne Savolainen.
The slowdown in housing construction is mainly due to the rise in loan interest rates.
Most new building starts in Finnoo and Suurpelto
Of the dwellings started last year, 372 dwellings were in detached houses. Of the dwellings started, 603 (21%) were rental dwellings and 223 (8%) right-of-occupancy dwellings.
In 2023, building permits were granted for 2,998 new dwellings. The number of permits is clearly lower than in 2022, when just over 5,000 building permits were granted.
Most of the new dwellings were completed in Tapiola, Suurpelto, Niittykumpu and Perkkaa. Most new residential building starts took place in Finnoo and Suurpelto.