The tenant market in 2025 – how to stand out when there are too many apartments?

In 2025, the Finnish rental housing market will have reached an exceptional situation. In many areas, supply is greater than ever, and in the capital region in particular, rent increases have stopped or even begun to decline. According to Statistics Finland, prices for privately financed rental apartments in Helsinki have fallen by 1–2% over the past year, while the number of vacant apartments has increased significantly (1). This development has led to tenants now having a stronger position than they have had in decades – they can choose, compare, and even negotiate their rent, forcing landlords to take a completely new look at their operations.

Previously, landlords did not need to do much more than publish an advertisement, but now apartments may remain vacant for weeks or even months. According to Helsingin Sanomat, landlords have started to attract tenants with various benefits and campaigns: rent-free months, gift cards, and even furnished apartments (2). Many landlords are in a situation where they have to adapt to the tenant market – and that means a new way of thinking about the quality and marketing of rentals.

The importance of quality and service has grown enormously. Tenants are now looking above all for well-maintained, modern, and comfortable homes. Modern kitchens, high-quality bathrooms, and fast broadband connections are a given. In addition, flexibility, such as allowing pets or offering shorter leases, can be a deciding factor. Landlords who offer tenants something extra—even if it's just a small "welcome gift" or including internet access in the rent—stand out from the crowd in a positive way.

Helsingin Sanomat also reports on private landlords who have begun to devise creative ways to find tenants. One of them, Jaakko Herranen from Vantaa, managed to rent out his apartment after only four months of searching—and finally found a solution when he offered to personally help with the move with a trailer (3). This was not only a practical gesture, but also increased trust between the tenant and the landlord. According to Herranen, “you have to be active and know how to create attractive ads with good pictures and somehow stand out.” His example illustrates well what everyday life will be like for landlords in 2025: creativity and humanity are now competitive advantages.

Anne Viita, Executive Director of Vuokralaiset VKL ry, considers this phenomenon to be healthy. She believes it is good that landlords are investing more in marketing and service than before. Viita also says that most landlords have changed their two-month rent deposit requirement to one month, and some of the big players do not require a deposit at all because they want to attract young tenants with easier terms (3). This is a significant change in the dynamics of the rental market—landlords no longer set conditions unilaterally but have to compete for tenants by offering them flexibility and benefits.

Responsibility and digitalization have also become increasingly important ways to stand out from the competition. Remote viewings, electronic applications and contracts, and automatic payment services make the rental process smoother. At the same time, energy efficiency, environmentally friendly solutions, and reasonable housing costs appeal to tenants, who are making their choices more consciously than ever before (4). Many landlords are now even considering offering tenants a small degree of decision-making power over the furnishings of their apartments—for example, the option to choose a cooler or air source heat pump at the landlord's expense (3). This may be the “next step” in tenant-friendly renting in the future.

The situation is currently most difficult in the capital region. The oversupply is greatest in Helsinki, Espoo, and Vantaa, where there is an exceptionally large number of vacant apartments and new properties continue to be completed (5). The situation is directly reflected in rent levels, as rent increases have almost come to a halt. Many landlords feel that this situation is unprecedented – tenants now have a real opportunity to choose the best option from a range of possibilities. Elsewhere in Finland, such as in Tampere and Oulu, the situation is more balanced, but the same trend can be seen there too (6).

To succeed in the rental market, landlords need to think differently. It's not just about price, but also about experience: tenants are looking for a home, not a contract. That's why a combination of quality, flexibility, digitalization, and responsibility is now the recipe for success. Landlords who are able to stand out with their humanity and modern approach will emerge victorious from the competition – and are more likely to find long-term, reliable tenants.

By 2025, the Finnish rental housing market will have undergone a clear change: supply has increased in many locations, and in the capital region in particular, rent increases have stopped or even begun to decline. According to statistics, rents for privately financed rental apartments rose very moderately throughout the country, and a decline was observed in the capital region. This means that tenants now have better choices and their bargaining position has strengthened. (1)

This new situation challenges landlords' traditional operating models: simply offering "a decent apartment for rent" no longer guarantees demand, as the number of tenants is not growing at the same pace as supply. In many large cities, there is a large number of vacant rental apartments, forcing landlords to think about how to make their apartments stand out. (2)

The importance of quality is now more pronounced than ever. Tenants are no longer satisfied with just a clean apartment – they also want convenience and a smooth living experience. A modern, well-equipped apartment that can be connected to digital services (fast internet, electronic application process, remote viewing) stands out from the crowd. In addition, a flexible lease (e.g., pets allowed, shorter lease term) or a small "extra" benefit (internet included in the rent, welcome package) can make a difference. (3)

Pricing and marketing play an important role. In a situation of oversupply, excessively high rents can easily lead to months of vacancy. It is smarter to set a realistic rent and fill the apartment than to wait for the "perfect" price and risk the costs of an empty apartment. On the marketing side, professional photos, a virtual tour, and a clear advertisement—highlighting competitive advantages (e.g., location, service levels, digital solutions)—can help. From the applicants' point of view, it may also be important that the landlord appears to be flexible and active from the tenant's perspective. (4)

Digitalization and responsibility are becoming competitive factors in markets where tenants have gained more power. Electronic applications, remote viewings, and automatic rent payments make applying for an apartment smoother and more attractive. In addition, environmental friendliness, energy efficiency, and control over housing costs are important values for many tenants. When landlords communicate their commitment to responsibility—for example, through energy-efficient appliances or reducing the carbon footprint of their properties—they gain respect and stand out in a market where tenants are in high demand. (5)

In some cases, the oversupply in the market is very evident: For example, in Helsinki, landlords have started offering promotions such as "one month without rent" or a parking space included in the rent, as the number of vacant apartments has increased and competition for tenants has intensified. (6) Landlords should therefore bear in mind that in a situation where tenants have a choice, they have the opportunity to differentiate themselves—but this requires active effort, not just advertising the apartment.

The situation is particularly challenging in the capital region: supply has been high for a long time and rent increases have stalled or turned into declines. Many landlords feel that they have never seen a situation like this before – tenants are now in a stronger position than they have been for many years. (7) Elsewhere in Finland, however, such as in the growth centers of Tampere, Oulu, and Vaasa, demand still slightly exceeds supply, but it is still important to differentiate, as the market is expected to tighten there as well. (8)

All in all, it can be said that in 2025, tenants will be in a strong position in the rental housing market, and landlords will need to stand out in many different ways. Quality, flexibility, digital services, responsibility, and professional marketing together form a successful rental housing package. Landlords who take change seriously and develop their operations accordingly will find good tenants faster and reduce the risk of vacancies. When an apartment is attractive and the tenant is happy, a long-term tenancy is more likely – and at the same time, the investment can generate better returns in the long run.

Sources

1. Yle.This is how the "tenant market" now looks in large cities – Helsinki continues to be in a league of its own.December 18, 2023.(https://yle.fi/a/74-20053788)
2. Helsingin Sanomat.Rental market in turmoil: “I don’t remember anything like this in my entire career.”March 26, 2024. (https://www.hs.fi/talous/art-2000011571126.html)
3. Helsingin Sanomat.Jaakko Herrasella had difficulty finding a tenant until he agreed to help with the move.October 22, 2025. (https://www.hs.fi/pkseutu/art-2000011574790.html)
4. SalkunRakentaja.There is oversupply in the rental market – “renters have had it easier than homeowners.”October17, 2024. (https://www.salkunrakentaja.fi/2024/10/vuokramarkkinoilla-ylitarjontaa/)
5. Finnish Landlords.Rental Market Review 2025.(https://vuokranantajat.fi/uutiset/vuokramarkkinakatsaus-2025/)
6. Pellervo Economic Research (PTT).Regional housing market forecast for 2025.(https://www.ptt.fi/ennusteet/alueellinen-asuntomarkkinaennuste-2025/)
7. State-supported Housing Construction Center (VARKe).Rental housing market in 2025.(https://www.varke.fi/fi/tilastot-ja-julkaisut/asuntomarkkinat/vuokra-asuntomarkkinat-2025/)