Income of households 

Updated: 18.3.2016 - Next update: 16.3.2017

Development of income more favourable among owner-occupiers than among renters

The income differential between owner-occupier households and rental dweller households has grown significantly over the past 15 years. According to Statistics Finland's income distribution statistics, from 1995 to 2010 income level went up by 49 per cent among owner-occupier households and by 26 per cent among rental dweller households. In 2010, the average disposable income per consumption unit was EUR 26,970 for owner-occupiers and EUR 16,150 for renters. Of the 2,551,000 households in Finland, 68 per cent live in owner-occupied dwellings and 30 per cent in rented dwellings. One-half of the owner-occupied dwellings are debt-free.

Households' average housing costs (including housing loan interests but not amortisations) amounted to 12 per cent of their disposable cash income in 2010. For rental dwellers the share was 22 per cent, for owner-occupiers of indebted dwellings 10 per cent and for owner-occupiers of debt-free dwellings 9 per cent. When amortisations of housings loans are also taken into consideration, housing costs accounted for the same share of income among owner-occupiers of indebted dwellings as among rental dwellers, i.e. 23 per cent.

If there is no housing debt, owner-occupier households have more money left for other consumption than other households with corresponding cash income do. The low loan interest rates in recent years have brought down the housing costs of owner-occupier households. However, it has also meant smaller tax deduction benefits. On the other hand, the rising of rents has increased differences in consumption possibilities between owner-occupier and rental dweller households.

Statistical release

Statistics Finland / Income distribution statistics

Description of indicator

The indicator describes the distribution of disposable money income of households and income differentials between different socio-economic groups.

Disposable money income is arrived at when current transfers paid are deducted from gross income. The household's current transfers paid are mainly formed of direct taxes and social security contributions. In addition, current transfers paid include compulsory pension and unemployment insurance premiums and child maintenance support paid.

Equivalent income is the household's disposable money income divided by the number of consumption units in the household. In consumption unit scale the first adult of the household receives the weight 1, other over 13-year-olds receive the weight 0.5 and children receive the weight 0.3 (0 to 13-year-olds are defined as children). Equivalent income is an income concept by which incomes of households of different types are made comparable by taking account of shared consumption benefits.

The socio-economic group of the household is determined by the household's reference person.