Finland student housing: Subsidy reform impact analyzed

An analysis by KOVA ry chief economist Eetu Kauria reveals that a 2025 reform to student housing subsidies has had a smaller impact on living arrangements than anticipated. While the reform aimed to reduce public spending by shifting students from general housing support to student aid housing allowances, the shift toward co-living has been more gradual than expected.

Data from VATT Datahuone shows that while single-person living decreased by 4.4 percentage points in 2026 compared to 2024, it remains the most popular option. In February 2026, 45 percent of students lived alone, 38 percent lived in shared housing, and 17 percent lived with parents. The reform made co-living more attractive because a roommate's income no longer affects the housing allowance, yet many students prioritize the benefits of living alone despite rising costs.

On a personal level, the tightening housing market continues to present challenges for new students. In cities like Tampere, the high demand during the start of the academic year has forced some students to rely on temporary accommodations, such as Airbnbs, while searching for permanent rentals.