Why We Can’t Buy Old Houses (And Why That’s a Climate Problem)
Published: December 31, 2025
Author: Äctvli Responsible Consulting
We tried to buy a house this year, different 1970s properties in good areas, all needing surface work—cabinets, floors, paint. We qualified for a loan higher than the selling price.
Every bank said no.
Not because the houses were structurally unsound. Not because we couldn’t afford them. The banks’ risk models flagged “old property” + “needs renovation”, and after going through the standard house health reports (which are literally created to find faults in everything), they shut the door. They required down payments we didn’t have—sometimes 50% of the purchase price—for houses that only needed cosmetic updates.
We walked away frustrated. Then we started asking around. This led to loads of research and articles while trying to find ways around it and boy did it lead down an interesting rabbit hole. using the same methods taught for Business Transformation master thesis, on went the ESG hats and the digging started. This is ‘research’ was a trickle that began probably over a year ago. But it is now finally put together with the help of Äctvli”s Vigilantia solution and framework.
As it turns out, this isn’t just our problem. It’s systemic. And it’s driving something much bigger: Finland is demolishing 8,000 buildings a year—double the rate from 2010. Most are 40-50 years old. Most could be renovated. Instead, they’re being torn down.
The same financial system that blocked our renovation loan is funding demolitions.
The Contradiction
Finland committed to carbon neutrality by 2035—10 years from now. But:
- Demolishing and rebuilding generates 22-46% more lifecycle carbon than renovation
- Finland destroys roughly 750,000 tonnes of embodied CO₂ annually through demolition
- Construction and demolition waste recovery: 63% (lowest in the EU; Denmark hits 92%)
- Renovation investment: down 20-25% since 2023
Meanwhile, homelessness increased in 2024 for the first time in over a decade. The buildings being demolished? Often the most affordable housing Finland has.
We Wrote a Paper About It
We couldn’t unsee the connection between our personal experience and the larger climate and housing disconnect. So we documented it.
“The Hidden Cost of the Wrecking Ball: Why Finland is Demolishing Its Future, One Building at a Time” is a 50-page analysis covering:
- The carbon contradiction (why demolition undermines Finland’s 2035 climate target)
- The waste crisis (the worst CDW recovery rate in the EU)
- The affordable housing time bomb (how demolition is fueling homelessness)
- The policy gap (what is said vs. what is being done)
- Seven concrete policy recommendations (with implementation timeline to 2035)
This isn’t just academic. It also impacts a lot of people personally. And it’s backed by data from VTT, Statistics Finland, Ministry of Environment, and Nordic comparisons.
Why This Matters
If you’re:
- A homebuyer trying to finance an older property
- A municipality trying to meet climate targets while managing housing shortages
- A developer or investor navigating ESG requirements and carbon liability
- A policymaker wondering why renovation investment is collapsing
- Anyone who thinks Finland’s climate commitments should match Finland’s actions
- Students working on ESG-related assignments
This paper could be useful to you.
What Happens Next?
We hope to get this out, so by all means share it with the movers and shakers eg:
- Finnish Ministry of Environment
- Municipal planning departments
- Housing advocacy organizations
- Banks and developers
- Anyone who feels they can help
About Äctvli Responsible Consulting
We work at the intersection of ESG strategy, transformation management, and honest systems thinking. Vigilantia is our ESG pillar—focused on making sustainability claims match reality.
Contact: [reachout@actvli.fi]
Web: [www.actvli.com]