Published: 15 February 2021

Building costs rose by 0.6 per cent in January year-on-year

According to Statistics Finland, building costs grew by 0.6 per cent in January 2021 from one year back. Labour costs increased by 0.8 per cent and material costs by 0.5 per cent. The prices of services fell by 0.3 per cent compared to one year ago. Employer's social insurance contributions for 2021 have been updated in the calculation of the index, which explains the growth in labour costs in January.

Long term development of the Building Cost Index

Long term development of the Building Cost Index

From December to January, the total index of building costs rose by 1.2 per cent. At the turn of the year, the Building Cost Index was raised especially by labour costs, which grew by 2.3 per cent from the previous month. The prices of materials went up by 0.5 per cent and those of services by 0.3 per cent compared with December.

The most significant explanation for the rise in labour costs compared to the previous month is the removal of the reduction in pension insurance contributions applied from May to December 2020. Pension insurance contributions have now returned to the same level as they were in January 2020.

Other employer's social insurance contributions have also been revised in January. The increase in labour costs compared to one year ago is explained by the rise in sickness insurance contributions and unemployment insurance contributions paid by the employer from 2020. The labour costs of the Building Cost Index are measured with the index of wage and salary earnings, which is raised with social insurance contributions updated annually in January.

Building cost index 2015=100, January 2021

Professional construction of new buildings Weights Index Monthly change, % Annual change, %
Total index   1000 105.1 1.2 0.6
By type of cost Labour inputs 400 105.1 2.3 0.8
Materials 510 105.4 0.5 0.5
Services 90 103.6 0.3 -0.3
By purpose of use Residential building 440 105.3 1.3 0.6
Other building construction 560 105.0 1.1 0.5

Source: Building cost index, Statistics Finland

Inquiries: Liina Arhosalo 029 551 3612, Merja Järvinen 029 551 2458, info@stat.fi

Head of Department in charge: Hannele Orjala

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Updated 15.02.2021

Referencing instructions:

Official Statistics of Finland (OSF): Building cost index [e-publication].
ISSN=1799-5841. January 2021. Helsinki: Statistics Finland [referred: 4.3.2021].
Access method: http://www.stat.fi/til/rki/2021/01/rki_2021_01_2021-02-15_tie_001_en.html