Planning for shrinkage through municipal real estate management

Source abstract

Population decline creates challenges for the built environment and local real estate markets. In such contexts, the role of public actors is emphasized, as municipalities have strong incentives to respond to these challenges. This article examines municipal real estate management as a planning response to shrinkage. It asks what measures municipalities have taken in relation to their property portfolios, how these measures are justified, and the challenges associated with them. The study focuses on shrinking rural municipalities and small cities, which remain underrepresented in research that has centred on larger urban areas. The analysis draws on a qualitative dataset consisting of site visits, semi-structured interviews with key stakeholders, and a review of municipal documents in three Finnish municipalities. The findings show that municipalities have sought to reuse vacant properties through temporary uses and by subdividing larger complexes into smaller units, while also disposing of properties through sale or demolition. By investing in new construction, municipal organizations can signal that, despite population decline, the area remains worthy of investment. Economic considerations were central to the justification of these measures. The article argues that municipal real estate management should be understood as a significant but underexamined instrument of planning in shrinking regions.