PTT survey identifies four distinct resident profiles – established outlying city districts found unappealing

Aarnio of SATO Corporation: Reputation of outlying districts can be improved through regeneration

**The majority of urban residents wish to live in leafy areas or locations where they have access to private outdoor space. Housing preferences vary by age group and resident profile: young people put a premium on transportation links, for example, while older people value access to services. This and much more is revealed in a survey conducted by Pellervo Economic Research PTT. The survey indicates that established outlying city districts are not perceived as appealing places to live, and according to Antti Aarnio, Vice President, Investments at SATO Corporation this can be addressed through redevelopment, by means of infill construction. SATO was one of the commissioners of the survey. **

PTT used the discrete choice experiment method for the first time in Finland to examine feelings about housing. The method requires respondents to weigh various housing options and to choose the factors that they wish to emphasise and for which they are prepared to pay. The factors available included amount of greenery, type of building and size of home. All told, the survey had 2,900 respondents from 21 Finnish cities.*

Antti Aarnio, SATO Vice President, Investments, counts the need to regenerate established outlying city districts among the most interesting findings of the survey. Areas in close proximity to city centres are perceived on average as the best areas to live while newly developed districts come in second. Established outlying city districts are left in last place, with young people in particular expressing a dislike of them. These districts should indeed be made to provide more of the comfort factors appreciated in other residential areas, such as access to a wide range of services and good transportation links.

- As the report indicates, outlying city districts have a less than stellar reputation. This reputation can nonetheless be improved by practical efforts: by making these districts better places to live through infill construction. Properly planned and implemented infill construction can retain and even enhance the range of services already available in the neighbourhood, and it also involves paying particular attention to the design and upkeep of green areas, which is among the preferences that came across strongly in the survey. Redevelopment in outlying city districts is always carried out in close cooperation with the relevant city administration and local actors.

Another major point raised in the survey was the importance of shared spaces, an aspect of design on which SATO focuses as well. One of the ways to promote neighbourliness is to provide people with places, both indoors and out, where they can come together organically at their home buildings. SATO has had good experiences with this approach at its StudioHome in Vantaa, for example.

- When shared spaces are designed with an eye to providing a setting where residents can naturally congregate, this clearly lowers the threshold for neighbourliness and interaction. Shared spaces must thus also be viewed with fresh eyes, as the traditionally provided building clubroom is becoming less and less appealing to residents, Antti Aarnio says.

Four distinct resident profiles
The survey identified four distinct resident profiles: green city house dwellers (24% of respondents), urban city dwellers (15%), price-conscious owner-occupants (50%) and modern green city dwellers (11%).

Green city house dwellers clearly preferred their current home over any other suggested form of housing. The respondents in this group gave the highest rating to districts in close proximity to the city centre and their favourite types of building were detached, semi-detached and terraced houses. The availability of parking also made homes considerably more attractive to them.

Urban city dwellers enjoyed a lively urban setting and felt that a neighbourhood park provided sufficient greenery. This group favoured renting due to its flexibility – they felt that taking out a housing loan to buy a home would tie them down too much.

Price-conscious owner-occupants were particularly strongly influenced by home prices. This group had a neutral attitude towards living in established outlying city districts, whereas for all other groups this setting was a factor that clearly reduced the attractiveness of housing options. The least favourite type of building among this group was the townhouse.

Modern green city dwellers underscored the importance of greenery in their neighbourhood and attached somewhat more importance to shared spaces than the other groups. This group had the highest frequency of young respondents (under the age of 40) and women were also better represented in this group than within the sample on average.

Younger respondents more prepared to pay for living space

The preferences of urban residents also differed when examined by age group. Respondents under 40 put an emphasis on transportation links and considered easy commutes to work and school the most important factor influencing their choices. While respondents aged 40–60 also valued transportation links, an equally important consideration for them was the leafiness of the neighbourhood. The emphasis in the housing choices of respondents over 60 was on access to key services.

Respondents under 40 looked more favourably on renting than older respondents, and renting is indeed more commonplace among younger age groups. Nearly all respondents under 40 who were renting planned to relocate to a new home within the next five years.

When asked how much they were prepared to pay for dedicated parking, the lowest figure was chosen by respondents under 40. They were also quite open to the idea of giving up their car if the area had good public transportation and access to car sharing services. Respondents under 40 in general expressed positive attitudes towards public transportation.

Other survey findings and recommendations
* More than 93% of those who rented planned to relocate within the next five years. The cost of housing was the prime motivation here among all age groups. Among those under 40, nearly half wished to relocate due to the inappropriate size of their current home.
* Among those respondents who planned to relocate, 13% expressed an interest in forms of housing that fall between owning and renting. There appears to be a demand for more such options, as only 6% of the respondents currently lived in this type of housing.
* The desire for greenery and personal outdoor space voiced by many respondents could be met by equipping homes with spacious balconies and designing residential blocks with shared leafy courtyards or similar smaller green areas.
* Among living environments, the areas of choice on average were ones in close proximity to the city centre while newly developed districts came in second. Established outlying city districts were found the least attractive, disliked by young people in particular. These districts should indeed be made to provide more of the comfort factors appreciated in other residential areas, such as access to a wide range of services and good transportation links.

For more information, please contact:

Antti Aarnio, Vice President, SATO Corporation, antti.aarnio@sato.fi, p. 0201 34 4200, 040 164 7052
Emmi Haltia, PTT, p. 040 164 8169, emmi.haltia@ptt.fi 
Aija Tasa, RAKLI, p. 050 327 2077, aija.tasa@rakli.fi

* The survey was conducted in the following cities and their environs: Espoo, Hamina, Helsinki, Hämeenlinna, Joensuu, Jyväskylä, Kajaani, Kotka, Kouvola, Kuopio, Lahti, Lappeenranta, Lohja, Oulu, Pori, Salo, Seinäjoki, Tampere, Turku, Vaasa, Vantaa. A further sampling of 200 respondents was drawn from areas outside these cities.

The full survey report on housing preferences among urban residents and the related policy brief on the importance of effective public transportation and green areas to urban residents aged 40 and under are available (in Finnish) on the Pellervo Economic Research PTT website at www.ptt.fi

The survey was funded by RAKLI – The Finnish Association of Building Owners and Construction Clients, the cities of Helsinki, Espoo, Vantaa and Tampere, Helsinki Region Environmental Services Authority HSY, the Land Use, Housing and Transportation (LHT) Network, SATO Corporation and the Finnish Ministry of the Environment.