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Finland: Is Homelessness Policy Failing

The Housing First Principle Was Supposed to Help Finland Replace Temporary Shelters with Permanent Housing – to the extent Possible

Sep 10, 2026 18:18 56

Finland: Is Homelessness Policy Failing - 1

In about ten years, Finland has managed to more than halve the number of homeless people in the country. Behind this success is a successful model for replacing shelters with social housing. But is it now getting a breakthrough?

"Housing First" is the name of the initiative that Finland has been implementing since 2008. The idea behind it is that when someone is homeless or at risk of becoming homeless, they first need a home where they can receive support according to their needs. Previously, it was the other way around: mental health problems or addictions had to be treated first, and housing was the last step, explains Juha Kahila from the homeless aid organization Y-Säätiö.

The "Housing First" principle was supposed to help Finland replace temporary shelters with permanent housing stock - as far as possible. And for a long time it worked: between 2012 and 2023, the number of homeless people in the country fell from more than 8,000 to around 3,400, according to German public broadcaster ARD.

Government cuts social spending

However, the trend has since reversed. Juha Kahila blames this, among other things, on the current conservative government, which has cut social benefits "like nothing has happened since the 1990s". In addition, the government has reduced funding for important humanitarian organizations.

The reason: the Finnish government claims that it needs to make savings. The economy has been stagnant since trade with neighboring Russia was almost stopped. Finland currently has one of the highest unemployment rates in Europe, ARD recalls.

The consequences of the savings are slowly starting to be felt, says Marko Lahtela, head of a shelter in Helsinki. More and more people are being forced to visit food distribution points, but there are fewer and fewer of them. “People are increasingly relying on such assistance because social benefits are decreasing.“ In this way, Finland is moving away from its goal of completely eliminating homelessness by 2027.

One successful model alone is not enough

„Velo“ Senkel has gone all the way - from homeless living on the streets, through a temporary shelter, to social housing under the „Housing First” program. The 67-year-old Finn is grateful to have the opportunity to live in a housing complex with social workers and staff available 24/7. „Housing First“ has worked for him.

However, Finland also shows that a successful model for combating homelessness needs not only good ideas, but also sustainable funding. Especially in economically difficult times, ARD also writes.