The city of Hyvinkää in southern Finland has approved a significant new housing development to address a shortage of rental apartments in its urban core. Construction will begin in the summer on two new five-story apartment buildings on Suokatu street. The project will add 50 new rental homes to the municipal housing provider Hyvinkään Vuokra-asunnot's portfolio. This initiative directly responds to a chronic undersupply of family-sized apartments in central Hyvinkää, a common challenge in growing Finnish regional centers.
Hyva, the municipal housing company, selected construction firm YIT Housing Oy through a competitive tender process. The company received approximately ten bids for the contract. Project CEO Timo Kuiri stated that the current economic downturn in residential construction presented an opportune moment for the city to launch this development. The buildings will replace older wooden apartment blocks demolished last autumn, representing a direct urban renewal effort.
Finland faces a persistent structural issue with affordable rental housing supply, particularly for families. Municipal housing companies like Hyva play a crucial role in providing non-profit rental options. This model is distinct from many other European systems and is a cornerstone of Finnish housing policy. The Suokatu project includes both three and four-room family apartments, which Kuiri confirmed are in continuous high demand but scarce in the city center. The development will utilize a KVR contract model, where the contractor assumes full responsibility for all project phases from design to completion.
All apartments will feature high-standard fittings and glazed balconies. The building facades will be brick-clad on-site. Kuiri emphasized the prime location, noting future residents will appreciate proximity to central services and outdoor recreation routes. This project reflects a broader national trend where Finnish cities are actively densifying their cores to improve service accessibility and reduce car dependency. For international observers, it demonstrates how Finnish municipalities use their housing companies as direct policy tools to shape urban development and manage housing affordability.
The timing of this public investment during a private construction slump is a deliberate counter-cyclical measure. It provides work for the construction sector while securing better pricing for the public purse. The move is politically straightforward, addressing a visible public need with a clear municipal instrument. The real test will be whether such projects can maintain momentum as construction costs potentially rise again. For now, Hyvinkää is securing housing stock that will serve residents for decades.