Hitas

Hitas is a Finnish housing model that aims to provide affordable housing while preventing speculation. Developed in Helsinki, the system allows for the construction of apartments that are sold at a price below market value. However, the resale price of these apartments is also regulated. When a hitas apartment is sold, the price is determined by a formula that takes into account inflation and construction costs, rather than the current market demand. This means that while owners can build equity, they cannot profit excessively from the sale.

The primary goal of the hitas system is to ensure that housing remains accessible to a broader segment of the population, particularly those with average incomes. It is seen as a tool to combat rising housing costs in desirable urban areas. The model involves a housing foundation or a cooperative that owns the land, and residents purchase a right to use an apartment for a specified period, typically 50 years, through a housing company. This leasehold arrangement is what enables the controlled resale prices.

While hitas housing offers a more affordable entry point into homeownership, it also comes with certain limitations for owners. The restricted resale value means that owners cannot expect to gain the same level of capital appreciation as they would with a standard market-rate property. Nevertheless, the hitas model is considered a successful social housing solution in Helsinki, contributing to the city's diversity and affordability.