The average rent of the Helsinki City Housing Company (Heka) will be only 0.8% higher in 2022 than this year. Next year, the average rent in Heka housing units will be EUR 12.10 per square metre per month, whereas it is EUR 12.00 this year.
The average regional rents will be EUR 11.26–13.68 per square metre per month next year. The average rent will remain almost the same in approximately 80% of Heka locations.
The reasons for the rent increases are the general cost trend and the increased need of repairs. Thanks to rent equalisation, site-specific changes remain moderate.
Rent increases are mostly low
In 2022, Heka will have a total of 510 rent determination locations, with about 50,000 apartments. At 407 of the existing locations, average rent will remain almost unchanged, with a maximum increase of only 0.5%.
Rents will increase by more than 1% at 101 locations. However, increases in rents remain moderate, with a typical increase of 0.5–1%. Only 14 locations will see increases of more than 1%. The largest rent increases, exceeding 10%, will be in two locations, whose renovations will be completed next year. The housing quality of these locations will see major improvement.
The board of the Helsinki City Housing Company confirmed the rents for 2022 at its meeting on 6 October 2021. Residents will be informed of their next year’s rents by the end of October.
Heka determines rents using absorption pricing
The total rent charged by Heka is determined using absorption pricing, which means that the rent we charge covers the apartments’ construction, renovation, maintenance, and administration.
Heka’s total absorbed costs are first divided into regional average rents and then into site-specific average rents based on utility values according to the location, condition, building type, standard of equipment and level of quality.
Heka’s rents are significantly lower than average in the Helsinki region. At present, Heka’s average rent is about 45 percent lower than the average rent for non-subsidised housing in Helsinki.