Rovaniemi is Finland’s northernmost university city – and one of the few – but this isn’t always reflected in the city’s decision-making. The student housing situation in Rovaniemi has reached a crisis point, and the Student Union of the University of Lapland (LYY) and the Student Union of Lapland University of Applied Sciences (ROTKO) are deeply concerned that more and more students cannot afford or even find a place to live in Rovaniemi – all while the number of tourists grows and short-term rentals become increasingly common.
Tourism is a key driver of Rovaniemi’s vitality, bringing jobs, entrepreneurship, and visibility to the region. However, its rapid growth poses challenges to urban planning and housing policy – especially from the perspective of students.
According to city estimates, there are between 1,000 and 1,500 homes in Rovaniemi used for short-term rental – the highest per capita in Finland. At the same time, students’ chances of finding affordable rental housing have significantly decreased. Rents have risen, and competition for the few available apartments has intensified.
Many students experience the effects firsthand. Permanent leases may be terminated as peak season approaches, or some apartments are not rented to students at all on a long-term basis. In autumn 2024, the temporary housing offered jointly by LYY and DAS quickly filled up. The situation has already led to some exchange students cancelling their stay due to the lack of accommodation.
At the same time, students’ financial situations are worsening. The freezing of study grant indexation, the planned shift back to the housing supplement model under the study grant system, and cuts to housing benefits for special groups are making housing increasingly difficult. DAS housing is insufficient, and building new student apartments is challenging due to funding cuts.
The Building Act Reform Must Not Worsen the Situation
The reform of the Finnish Building Act presents an opportunity to address the challenges of short-term rental – but the current draft risks weakening municipalities’ ability to responsibly manage this development.
According to the proposal:
- Apartments could be rented short-term for up to 90 days per year without a permit (or up to 180 days by municipal decision),
- Professional short-term rentals would be considered consistent with residential zoning.
This would legalize currently restricted short-term rental practices and reduce the influence municipalities have over them.
While the impacts of short-term rentals are not yet as severe in Kemi and Tornio as in Rovaniemi, tourism development strategies – particularly in Kemi – suggest the phenomenon will increase. It is therefore essential that legislation enables municipalities to act proactively before situations escalate.
LYY and ROTKO’s position is clear:
- The Building Act must give municipalities greater power to regulate short-term rentals according to local needs.
- Municipalities must be able to set annual limits on short-term rental days – including downward (e.g., 0–90 days).
- Professional short-term rentals must not automatically fulfill zoning criteria for residential use.
There Can Be No Sustainable Tourism Without Homes for Workers and Students
The number of tourists in Rovaniemi is expected to reach one million annually by 2030, and more accommodation capacity is needed. But sustainable tourism growth also requires affordable housing for students and workers – without a home, one cannot study, work, or build a life in Rovaniemi.
We call on decision-makers to safeguard student housing in tourism-driven cities like Rovaniemi. What’s needed:
- Clear rules for short-term rentals,
- Innovative solutions for building student housing,
- Securing students’ financial well-being.
Students have a right to a home – not just a bed.
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