The rise in homelessness is the largest in recorded history – “Now is the time for serious self-reflection”

There are now 4,579 single homeless people, and overall homelessness increased by 20 percent in one year. The previous significant rise occurred in 2024, when the number of single homeless people increased by 11 percent, or 377 individuals. Before that, the peak year was 2008, when homelessness rose by 5.7 percent, or 430 people.

“Homelessness has not increased in consecutive years since 2009. At that time, the numbers were turned downward through a comprehensive homelessness programme that created the Housing First model. We now need similar determination,” says Teija Ojankoski, CEO of Y-Säätiö.

People are not accessing help in time

The increase in homelessness above all indicates that the service system is reacting too late. The service provision of the wellbeing services counties is only gradually returning to pre-health and social services reform levels, which is visible in delays in accessing help. As a result, the risk of homelessness materialises before support can begin.

“In recent years, Finnish society has been moving in a direction where more and more people are falling behind and losing their homes. Services are unable to respond to the need for help, even though good work is being done across the country to secure people’s housing,” continues Ojankoski, who is a member of the government’s steering group for the programme aiming to ending long-term homelessness by 2027.

Among those experiencing homelessness, there is a growing number of low-income individuals who do not have other significant life-management challenges. Without financial buffers, even a small change in income or benefits can lead to the loss of one’s home.

“The threat of homelessness now affects a broader group than we are used to or have designed our service system for. Cuts to housing allowance and social assistance in a societal situation where many individuals and families are already financially stretched create situations where people are unable to hold on to their homes,” Ojankoski explains.

Homelessness is rising even though the solutions are known

Particularly concerning is the increase in long-term homelessness and the continued homelessness of families with children. According to Varke’s report, there are 1,306 long-term homeless people, and their number increased by 29 percent in one year – clearly faster than homelessness overall. This indicates that more and more people are remaining homeless for extended periods instead of having their situations resolved in time.
Homelessness among families with children has not been reduced, which shows that current measures are insufficient to prevent homelessness. The rise in long-term homelessness is also visible among young people and women.

The government has launched a programme aimed at ending long-term homelessness, implemented in cooperation with wellbeing services counties and the largest cities. The programme has improved the identification of people experiencing homelessness and access to services, but the growth figures show that this has not been enough to halt the increase in long-term homelessness.

“Finnish homelessness work has been developed for nearly twenty years according to the Housing First principle, where housing is a human right and a home is the first form of assistance. For the model to work in practice, housing-related benefits must correspond to real needs. Social needs-based assessment must be reinstated in housing-related benefits to ensure that people do not fall through the cracks and end up in long-term homelessness,” Ojankoski says.

Prevention is the most cost effective option for society

Homelessness is always the most expensive option for society. When people lose their homes, costs accumulate in social and health services as well as crisis interventions. Housing allowance plays a central role, and the market alone cannot solve homelessness.

“The savings sought through cuts will not materialise if people lose their homes and their opportunity for a secure daily life. Prevention and timely support are both the most humane and the most economically sensible ways to prevent homelessness,” Ojankoski emphasises.

Homelessness is not caused by individual characteristics but by societal conditions. We are moving toward a direction where homelessness is being generated faster than it can be reduced, which may increase residential segregation. The situation requires swift corrective action: the level of housing allowance must be raised to a realistic level, and social needs-based assessment must be reinstated in housing-related benefits.

“Now is the time for everyone in decision-making positions to look in the mirror. The measure of a society’s civility is how we treat those in the most vulnerable positions. We are capable of doing much better,” Ojankoski concludes.