Finland has long been the only member state of the European Union where homelessness has been consistently reduced over several years. This progress has not been accidental, but the result of long-term work by the state, municipalities, and third-sector actors since the 1980s. However, recent economic and structural changes have interrupted this positive development: homelessness began to increase in 2024 for the first time in more than a decade, and growth continues.
According to the most recent nationwide surveys, there were approximately 4,579 homeless people in Finland in 2025. The number of single homeless individuals increased by 773 compared with the previous year. Homelessness rose by 20 percent compared with 2024.
Of the total number of homeless people, 1,306 were classified as long-term homeless people. A person is considered long-term homeless if their homelessness has lasted at least one year, or if they have repeatedly been homeless during the past three years.
Long-term homelessness is often associated with social or health problems that significantly complicate housing, such as debt, substance abuse, or mental health issues. Homelessness may have become prolonged because conventional housing solutions have not worked or because support services have been insufficient.
In Finland, homelessness is concentrated particularly in the Helsinki metropolitan area and other major growth centers. Compared with the previous year, homelessness increased in all the largest cities except Kuopio and Oulu. The increase was greatest in Helsinki.
Homelessness rose in all recorded categories. The largest increase occurred among people temporarily staying with friends or relatives; there were more than 500 more such individuals than in 2024. The number of homeless women and homeless young people (under the age of 25) also increased compared with 2024. There were more than 1,000 homeless women and approximately 760 homeless young people. The number of homeless people with a foreign background was 966.
The statistics are indicative, but they help track major changes and long-term developments. Although Finland has successfully reduced homelessness over the long term, the recent increase shows that the progress achieved is not permanent. Homelessness often worsens during social and economic crises, which highlights the importance of preventive work and adequate support services in the coming years as well.
A homeless person does not have their own rental or owner-occupied dwelling. Homeless individuals include people sleeping on the streets or in stairwells, those staying in emergency shelters or institutions, and those temporarily staying with friends or relatives.
In Finland, homelessness is understood broadly. The Housing Finance and Development Centre of Finland (Varke) divides homelessness into four groups:
The ETHOS classification, developed by FEANTSA, differs somewhat from the Finnish definition.
Work to address homelessness in Finland has a long history. Homelessness entered public debate already in the 1970s, and the Y-Foundation was established in 1985 to address the problem through permanent housing solutions. In the 1980s, the first day centres for homeless people were opened, and in the 1990s a major structural reform was carried out in mental health services: institutional care was reduced, and services were moved into people’s everyday environments.
In the 2000s, homelessness policy increasingly focused on housing and housing policy measures. Traditional hostels were converted into supported housing units, and state guidance was strengthened so that responsibilities were clarified, and goal-oriented and partly binding programmes were introduced.
Since 2008, Finnish homelessness policy has been based on the Housing First model, in which permanent housing is seen as a fundamental right and a prerequisite for recovery. The implementation of the model has been guided by national homelessness programmes that have increased the construction of affordable rental housing, strengthened housing-related social work, hired additional professionals, established the role of peer experts within services, and invested in prevention measures such as eviction prevention and early support.
Currently, Finland is implementing a programme aimed at ending long-term homelessness by 2027. Although long-term work has produced significant results, the rise in homelessness in 2024–2025 shows that changes in the operating environment can quickly affect the situation and require additional measures in both housing policy and social services.
Homelessness is a societal phenomenon influenced by population growth, urbanisation, economic cycles, and income inequality. At the structural level, a key cause remains the shortage of small and affordable housing in growing urban areas. In many areas, rents have increased faster than the incomes of low-income households, making it more difficult to maintain housing or obtain a new home.
During the past two years, the rise in homelessness has been influenced by prolonged economic uncertainty and weak employment development in certain sectors, rising housing costs and rents, and changes to social security and reductions in benefit levels, which have weakened the financial buffer of low-income households. In addition, cost-cutting pressures on municipalities and wellbeing services counties have affected the availability of housing support and low-threshold services.
In recent years, high inflation, rising energy prices, and the general increase in the cost of living have increased indebtedness and payment defaults. Rental debt and the loss of credit records make it more difficult to obtain a new rental apartment and prolong periods of homelessness.
At the individual level, risk factors for homelessness include low income and financial insecurity, substance abuse and mental health problems, difficulties in managing everyday life, weak social networks, and sudden life changes such as illness, separation, relocation, or unemployment.
The amount and duration of homelessness are also significantly influenced by how timely and sufficient the support provided by society is. If housing advice, mental health and substance abuse services, or financial and debt counselling are not accessible, the risk of prolonged homelessness increases. Recent developments show that preventive work, affordable housing production, and adequate support services are becoming even more important in a changing economic situation.
Housing First is the guiding principle, operational model, and way of thinking behind Finnish homelessness work. The Housing First model is based on the idea that housing is part of human rights and a fundamental right of every person. In the Housing First model, all work done to support people experiencing homelessness begins with the idea that the first form of support offered to a person is a home of their own.
In Finland, the thinking behind Housing First is strongly influenced by the “Name on the Door” report. This report marked a significant turning point because it recognized long-term homelessness as a structural problem rather than an individual failure. The report highlighted that without permanent housing, services do not produce the desired outcomes. It laid out the foundation for the idea that a home cannot be the end goal — it must be the starting point.
In traditional homelessness services, the prevailing assumption was often that a person must first prove their capability for example by committing to treatment, remaining substance-free, or progressing through service steps before having access to their own home. This approach is known as the staircase model.
The staircase model has several problems, because moving from one step to the next often fails. As a result, people experiencing homelessness can become stuck in temporary housing arrangements.
Housing First reverses this logic. Housing is not a reward but a foundation. The idea is simple but radical: only when a person has a home do they have real opportunities to recover, engage with services, and make changes in their life.
The Housing First model means that everyone has the right to their own home regardless of their life situation. Housing is not conditional or temporary. It is based on the same legislation that governs housing for everyone else. Housing provides stability upon which other forms of support can be built. Change does not occur through coercion, but through enabling.
The Housing First model is guided by clear principles. Housing is a fundamental right in which a person’s self-determination and freedom of choice are respected. Housing First principles emphasize independent living, freedom of choice, and participation.
In the Housing First model, all work aimed at supporting people experiencing homelessness begins with the idea that the first support offered to a person is a home of their own. The goal is not merely survival but recovery, empowerment, and integration into communities.
The Housing First model is implemented according to four main principles:
You can read more about how to implement the Housing First Europe model in the Housing First Europe guide.
The most important goal of the Housing First model is to ensure the continuity of housing. In addition to housing, the model includes support services, which are central to its success.
In the Housing First model, the home is an ordinary, permanent rental apartment. Support is not tied to the right to housing, but it closely accompanies housing.
Support is brought to the person’s home. Its amount and form may vary depending on the person’s life situation. What is essential is multidisciplinary cooperation and flexibility. Housing and support go hand in hand. Support adapts to the person’s needs not the other way around. This enables people to manage their everyday life and achieve long-term changes.
In addition to securing housing, the Housing First model aims to promote health and wellbeing, support social networks and integration into communities, and encourage participation in meaningful activities.
Housing First can be implemented in many ways, such as through supported housing, scattered-site apartments, housing units, or mobile and outreach work.
A key factor is cooperation between landlords, wellbeing services counties, and organizations, as well as effective links to social and health services. The Housing First principle is not a single service or model but a broader framework.
It is visible in housing counselling, scattered-site apartments, low-threshold services, development projects, and collaboration between different actors. Solving homelessness requires close cooperation between cities, wellbeing services, counties, organizations, ministries, and service providers. No one solves homelessness alone.
Within the Housing First model, there may be several complementary goals. The model views homelessness as a comprehensive phenomenon that requires both structural and individual solutions. A central principle of the model is that permanent housing is a fundamental right and the starting point for other support.
Securing housing means actions that ensure a person has a stable and safe home.
The risk of becoming homeless is prevented by addressing issues early, such as rental debts or life crises. If a person is already homeless, the aim is to prevent the situation from worsening by providing temporary accommodation and necessary support services. It is also important to prevent homelessness recurrence by ensuring sufficient and long-term support to maintain housing.
There is strong research evidence of the effectiveness of the Housing First model. Housing stability rates are high, and the use of crisis services decreases. People’s quality of life improves, and over the long term the burden on the service system is also reduced.
At the societal level, the Housing First model brings significant benefits. Emergency visits and the need for specialized healthcare decrease, resulting in cost savings.
The Housing First model can successfully help eliminate homelessness if the supporting structures are in place. The model is based on ensuring that enough affordable housing is built and that a variety of housing options are available. In addition to tailored support, the Housing First model also relies strongly on the Finnish social security system. Alongside housing and support services, it is important that individuals have meaningful activities in their everyday lives.
Many Housing First units therefore offer low-threshold work activities, which at best help highlight an individual’s strengths and skills while also increasing their sense of participation and inclusion.
One of the key practices in Finland that supports the Housing First model is housing advice (housing counselling). This service makes it possible to address housing-related problems at an early stage, helping to prevent situations from escalating into homelessness.
Distributed housing and subsidized housing units. Options for specific needs and circumstances.
Individual support seeks to address a variety of challenges in a person’s life.
400,000 state-subsidized rental apartments. Tenant selection is guided by the applicant’s housing needs.
Anticipatory measures: identifying the risk of homelessness and emphasizing early intervention and support.
Strengthening individuals’ strengths and skills and increasing inclusion in line with their abilities and goals.
Normal leases and social and health services.