Finland has lowered homelessness rates so much that it has basically ended its problems. Since the 1980s, the rates have been steadily decreasing.

Finland Ends Homelessness

There are many reasons why people can end up in homelessness. These can be because of a sudden job loss, or family breakdown and change. It can also be because of severe substance abuse or mental health concerns. Generally speaking, most concepts of ending homelessness are based on solving these problems first. Finland has flipped this idea on its head and started providing housing first. (1)

This Housing First concept is built on the idea that if you solve this need first, then these other health concerns and social concerns can be remedied. And it’s working. (1)

Finland’s Homelessness Statistics

In the 1980s, the number of individuals living in homelessness was 20,000. Between 1987 and 1996, the number of homeless cut in half. This is partly because of the general development in more affordable housing and partly because of the way Finland changed its principles and adapted different measures. They started building short term shelters and increasing the number of affordable houses, a critical part in reducing homelessness. The numbers slowed in the mid-’90s and again in the 2000s. (2)

By November 2010, there were 7,877 single homeless people and 349 homeless families in Finland. The number of homeless people decreased roughly by 10,000 people until 2010. (2)

By 2008, the homeless who were easier to house had been housed. But this number still left out the long-term homeless with more difficult health and social concerns and a significant amount of services and monitoring. Problems like severe substance abuse and mental health concerns. (2)

In 2007, the Housing First principle was adapted as the governments from 2008 to 2015 were tasked with ending the more challenging long-term homelessness. By 2011, those numbers were cut in half. (2) At the end of 2015, the number was under 7,000 for the first time ever. (1)

Housing First Principle

The scheme provides an apartment to the long-term homeless on a normal lease. The types of apartments range from self-contained apartments to housing blocks with constant support. The homeless are made tenants and they pay rent. They are also entitled to receive housing benefits. Depending on their income level, they may also pay for some of the support services they receive. The rest is covered by the government. (1)

At the same time, they also receive other support services. A housing advisor can give advice on delinquent rent payments or how to apply for more government benefits. They are also entitled to receive financial counseling services. (1)

The shelters that were used prior to Housing First were all transformed into supported housing. The government also built housing blocks and bought private apartments to turn into supported housing. (1)

“It all costs money,” wrote Juha Kaakinen, chief executive of the Y-Foundation that provides housing to Housing First. “But there is ample evidence from many countries that shows that it is always more cost-effective to aim to end homelessness instead of simply trying to manage it. Investment in ending homelessness always pays back, to say nothing of the human and ethical reasons.” (4)