Housing starts in the quarter exceed the long-term average need.
Construction the economic situation has quickly improved, says Rakennusteollisuus RT. The union predicts that construction will increase this year and next by just over a percent or two. Last year, construction contracted by four percent.
According to the construction industry, the accelerator is housing production, which has reached a record level again. The organization estimates that there will be 44,000 housing starts this year, exceeding the long-term average need in the quarter.
“The turnaround in the construction outlook has been rapid. Past uncertainty and weak demand have turned to concerns about high cost developments and the availability of materials and labor, ”says Rakennusteollisuus RT’s chief economist. Jouni Vihmo in the bulletin.
Detached house construction has received a strong boost from the corona pandemic. There are 17 percent more starts than last year.
In apartment building construction, the production of rental housing is declining, but the share of owner-occupied housing is increasing.
“Housing construction is now at a record level in recent history, but the situation in the Finnish housing market is stable. High production volumes correspond to low supply and strong demand for new homes for sale. Housing production will gradually slow down from next year, ”Vihmo estimates.
Rain According to Finland, the volume of construction is developing compared to other Nordic countries through extremes. Fluctuations in downturns and ups and downs are bigger for us.
“Strong cyclical fluctuations in construction are not good for the national economy or for construction. A more predictable operating environment should be created for construction through long-term infrastructure projects, smooth zoning and regulatory consistency, ”Vihmo insists.
According to him, it would smooth out cyclical fluctuations and support adequate housing production in the long run. It could also avoid cost spikes like the one we saw this year.