SDG 1, No Poverty: Housing First (Finland) At the Finish Line of the Fight Against Homelessness

Homelessness is arguably the most severe, visible, and degrading manifestation of poverty in the developed world. It strips individuals not only of shelter but also of their fundamental human dignity, making social and economic participation nearly impossible. While Sustainable Development Goal 1 (SDG 1) aims to eradicate extreme poverty in all its forms everywhere, most European countries are currently struggling with rising rates of homelessness, exacerbated by housing crises, economic inflation, and post-pandemic challenges.

However, one country has defied this global trend. Finland is currently the only nation in the European Union where homelessness is systematically declining. The secret to this success lies in a radical paradigm shift in social policy – the adoption of the ‘Housing First’ model. By treating housing not as a reward for solving personal problems, but as a fundamental human right and a foundation for recovery, Finland is on track to completely eradicate homelessness by 2027.

For decades, the standard approach to homelessness globally has been the ‘staircase model’. In this system, a homeless person must navigate a series of steps: moving from the street to an emergency shelter, then to a transitional hostel, and finally to a permanent home. Progress up the stairs is conditional. Individuals must prove they are ‘housing ready’, typically by demonstrating sobriety, finding employment, or successfully completing psychiatric treatment. For many, especially those with severe addiction or mental health issues, this system is a revolving door – one missed step results in a fall back onto the streets. Finland completely reversed this logic. The ‘Housing First’ project operates on the principle that having a permanent, secure home is a prerequisite for addressing other life challenges, not a reward for overcoming them.

Under the Housing First model in Finland, homeless individuals are provided with an independent, permanent apartment and a standard lease agreement. There are no preconditions regarding sobriety or psychiatric compliance. Once the person is securely housed, a multidisciplinary team of social workers, nurses, and financial advisors provides tailored, voluntary support services to help them maintain their tenancy, treat their addictions, and reintegrate into society. The individuals pay rent, often subsidised by national housing benefits, which gives them a sense of ownership and responsibility.

The foundations of this spectacular success story were laid in 2007, when the Finnish government formed a working group consisting of politicians, sociologists, and religious leaders to tackle the stagnating problem of long-term homelessness. In 2008, the Finnish government officially launched the National Action Plan to Reduce Long-Term Homelessness (PAAVO I), firmly embedding the Housing First principle into state policy. The critical component of the legal and structural foundation was the Y-Foundation, a non-profit organisation established by major Finnish cities, the state, and NGOs. The state provided the legal framework and grants, allowing the Y-Foundation to buy private apartments on the open market and build new housing blocks specifically dedicated to the Housing First initiative. As part of the policy, traditional emergency night shelters in cities like Helsinki were systematically closed down or physically renovated into supported apartment buildings with individual flats. The program has evolved through several government mandates. The current government has set an ambitious, legally binding target in its program: the total eradication of homelessness in Finland by 2027.

The benefits of the Finnish model extend far beyond the immediate relief provided to the beneficiaries, encompassing broad social and economic advantages.

1. Cost effectiveness: While giving away apartments seems expensive, it is actually a cost-saving measure for the state. A homeless person living on the streets frequently requires emergency medical care, police intervention, and justice system resources. Studies in Finland have shown that housing one chronically homeless individual saves the state approximately 15,000 EUR per year in emergency services and healthcare costs.
2. Restoration of dignity: Having a lockable door, an address, and privacy restores basic human dignity. An address is often legally required to open a bank account, receive welfare benefits, or apply for a job.
3. Higher recovery rates: It is nearly impossible to cure a severe alcohol or drug addiction while sleeping in the freezing cold. With the stability of a permanent home, individuals are much more likely to engage with voluntary rehabilitation services. Retention rates in Housing First programs typically exceed 80%, meaning the vast majority of people never return to homelessness.
4. Elimination of street culture: By converting large-scale emergency shelters into individual apartments, Finland dismantled the toxic ‘street culture’ and criminal networks that often thrive in crowded, temporary institutional settings.

Despite its resounding success, the Housing First model is not without its difficulties, and its implementation requires navigating significant hurdles.

1. High initial capital expenditure: The most significant barrier to entry is the upfront cost. Implementing Housing First requires a massive initial investment to purchase, build, or renovate housing stock.
2. The NIMBY syndrome: ‘Not In My Back Yard’ is a common social challenge. Local residents often protest the construction of supported housing in their neighbourhoods, fearing an increase in crime and noise, or a drop in property values. The Y-Foundation mitigates this by scattering apartments throughout the city rather than concentrating them in one ‘poor’ district.
3. Staff burnout and shortages: The individuals moving into these homes often have complex, dual diagnoses (e.g., severe mental illness combined with substance abuse). This requires a highly trained, resilient workforce of social workers. Staff burnout is a continuous challenge.
4. Does not cure everyone: While Housing First ends homelessness, it does not miraculously cure addiction or mental illness. Some tenants continue to struggle with severe substance abuse within their apartments, leading to property damage or disputes with neighbours.

The data surrounding Finland’s initiative show why it is widely regarded as the gold standard for social policy regarding extreme poverty. In the 1980s, there were nearly 20,000 homeless people in Finland. By the time Housing First was adopted in 2008, the number was around 8,000. As of recent statistics (2023/2024), the number of people experiencing homelessness has dropped below 3,700, and long-term, chronic street homelessness has been virtually eradicated. Helsinki currently has only one 50-bed emergency shelter, kept primarily for severe winter emergencies and undocumented migrants. Finland has successfully decoupled homelessness from economic crises. Even during the economic downturns of the 2010s and the recent post-COVID inflation, homelessness numbers continued to drop.

The potential of the Housing First model is global. It has proven that homelessness is not an unavoidable force of nature, but a political choice that can be solved with systemic investment. Cities across Europe, from Paris to London, and regions in North America are now studying and attempting to pilot the Finnish model. However, the future holds distinct challenges for Finland as it approaches the finish line. As the overall number of homeless people shrinks, the remaining cohort represents the most complex cases – individuals with the most profound psychiatric and social needs who require intense, 24/7 care. Furthermore, a general housing shortage and rising construction costs in the Helsinki metropolitan area pose a threat to the Y-Foundation’s ability to continuously acquire affordable flats. Finally, there is the challenge of ‘hidden homelessness’ – people couch-hopping with friends or family, who do not appear in official street statistics but still lack a home of their own. Finland’s Housing First proves that ending extreme urban poverty begins with four walls and a roof.