Finland's Housing First Model Faces Setback Amid Service Cuts

The Government of Finland pioneered the Housing First model in 2008, treating permanent housing as a fundamental human right rather than a reward. This strategy successfully reduced homelessness from approximately 8,000 people in 2012 to 3,400 by 2023 by prioritizing permanent homes supported by healthcare and employment services over temporary shelters.

Recent data indicates a reversal of this progress. Homelessness rose to 4,579 people by November 2025, representing a 20% increase over the previous year. This trend is attributed to rising living costs and sweeping cuts to benefits, healthcare, and social services implemented by the current right-wing government. NGOs report that these setbacks have particularly impacted women and young people.

Despite the domestic rise in homelessness, the Finnish model continues to influence international policy. British Prime Minister Andy Burnham has pledged to end rough sleeping in England by adopting the approach. Within Finland, organizations such as the Y-Foundation and Rinnekodit continue to manage affordable housing and support units, though they face increasing strain from the current economic and political climate.