The Finnish town of Lestijärvi, in the western region of Ostrobothnian, has seen birth rates soar since announcing an initiative offering parents 10,000 euros for new arrivals, so much so that the town is now suffering from a housing shortage.
With just 800 residents, the town decided in 2012 to try and come up with a way of stemming the number of young people looking for better opportunities in Finland’s cities. The local council’s plan was to offer 10,000 euros, a sum which would be paid in 10 yearly installments, for each newborn in 2013.
Needless to say the response was positive, with 14 babies born last year. That figure may not sound like a huge number, but the previous year the town recorded just one new birth.
City manager Esko Ahonen believes this trend will continue through the current year and, with the initiative due to run until 2016, the current housing problem could get even worse. He acknowledged that it was a problem there are not suitable homes for the young families, noting that there are currently three or four families looking to come to live in the town.
Lestijärvi is not the only Finnish town to offer financial bonuses in an attempt to curb the number residents leaving for the cities. The Association of Local and Regional Authorities (Kuntaliitto) says that about 70 municipalities in the country have introduced similar schemes. Some offer other incentives on top of money, such as paying for the parents’ hospital costs or even providing them with an apple tree.
Ahonen said the “baby bonus” appears to be working as young families are opting to stay in the town, while other couples have moved there.