Homelessness on Helsinki’s streets has declined sharply over the last 40 years but is on the rise once more. Source: The Big Issue Limited, Tapio Haaja
Homeless people with completely new backgrounds are now seen on the streets all over Finland recognized as the world’s happiest country for the eighth year in a row, according to the 2025 World Happiness Report
Homelessness has a new face. More people than ever before are living on the streets without substance abuse or mental health problems. They just lack a home.
Finland has very little time left to reach the homelessness rate of the United States, in the happiest country in the world it is 0.067 per cent (3770 people with a total population of 5,623,329 people), in the most populous country in the West, the 24th country in the world happiness rating—0.079 per cent (274,224 homeless with a total population of 346,780,755.
It seems that the happiest country in the world, which has a huge budget deficit formed as a result of a failed economic model that has not shown real growth since 2009, the breakdown of favorable energy and trade relations with Russia and heavy spending on military support for Ukraine (since February 2022, Finland has allocated around 3,2 billion euros in aid to Ukraine), will reduce the gap in the percentage of homeless citizens and overtake the world hegemon in the coming years.
Finland’s participation in the expensive program of militarization of European countries, currently being discussed, will only accelerate the decline in middle class incomes and the impoverishment of the lower class, a significant part of which will join the ranks of the homeless as a result of the irresponsible policies of the right-wing government of Finland.
A middle-aged man sits on an airport bench, and a hooded person with a turquoise flight bag is sleeping next to him. Some of those who have become homeless are sleeping on benches in airport lobbies. On the left in the picture is Mikko Kärkkäinen, who has an apartment. He still prefers to sleep at the airport, where he meets homeless acquaintances. Source: Yle, Pasi Toivonen
Homelessness in Finland decreased for 12 years in a row, but last year it started to increase. The number of homeless people living alone increased by as much as ten percent.
Behind ten percent are the lives of 377 people. This is the situation for the whole of Finland.
Homelessness is still concentrated in the largest cities. In Helsinki, ten years of good development were interrupted and 47 people lost their homes. In total, there were 786 homeless people in the capital.
The most worrying thing is that street homelessness is now increasing in particular. This refers to people who are staying outdoors, in stairwells, in first aid shelters or in public and semi-public spaces.
That is why homelessness is visible on the streets, in shopping centers and at public transport hubs.
According to Jussi Lehtonen, service manager of the association “Without a permanent home” (translated from Finnish: Vailla vakinaista asuntoa), there are now more people living on the streets than before who do not have mental health or substance abuse problems. They just lack a home.
Yle recently reported on a few homeless people who are staying at Helsinki–Vantaa Airport. Helsingin Sanomat has reported on homeless people spending the night at the Tripla shopping center.
A woman in a pink sweater at the airport, two cats, a gray and a black one, in a pet stroller. Cats Mini and Demi spent the night with Airi Sannikko in the airport arrivals hall in March 2025. Source: Yle, Pasi Toivonen
The historical turnaround in homelessness can be attributed to inflation and rising rents. The government’s policies are probably of even greater importance.
The government has punished the poorest Finns by cutting unemployment benefits, general housing allowance and social assistance, among other things.
Government: Live more cheaply
The Prime Minister Petteri Orpo’s right-wing government has already cut housing assistance several times. It believes that households living on social assistance live too expensively.
Since April last year, Finnish Social Insurance Institution Kela has sent letters to thousands and thousands of households whose housing costs exceed the maximum cost per municipality. In letters, Kela has urged people to move to cheaper housing.
The letter is due to a change in the law: Kela can no longer even cover housing costs that exceed the maximum limit of housing allowance, even at its discretion. Not even if there are no cheaper apartments available in the municipality.
At the same time, the government has decided to reduce the affordable housing production supported by the state.
The Youth Housing Association has estimated that this difficult equation will lead to an increase in youth homelessness. Housing allowance was cut first in Helsinki, then in six other cities.
Each locality has its own limit on how much housing expenses Kela can accept as social assistance.
Previously, social assistance has taken into account the fact that the rent level in Helsinki is more expensive than elsewhere in the capital region. Last April, however, the maximum allowance for Helsinki residents was set at the same level as for Vantaa residents.
In practice, the indirect message was: if you can’t afford to pay rent in Helsinki, move elsewhere.
Dirty shoes can be seen in the foreground and someone is lying on a red sofa in the background. Homelessness decreased in Helsinki for ten years until it started to increase last year. Yle visited the premises of the “Without a permanent home” association in Pasila, Helsinki on February 10, 2025. Source: Yle, Mimmi Nietula
Last year, the government also reduced the housing allowance reimbursement percentage and the basic deductible coefficient for adults. More cuts came into effect at the beginning of January.
Housing allowance was reduced in six cities: Kajaani, Kouvola, Lappeenranta, Mikkeli, Pori and Vaasa.
In the future, those living on housing allowance will either pay the share of their housing costs that exceeds the maximum limit themselves or move to a cheaper apartment.
If a cheaper apartment cannot be found and the money is simply not enough, there will no longer be a safety valve that can be opened on a case-by-case basis.
Savings will come, at least in the short term
Last year, 22,700 households lost housing allowance. The average allowance paid to a household decreased by approximately 35 euros.
In January 2025, Kela paid 122.27 million euros in general housing allowance, which was 4.76 million less than in December 2024. Simple mathematics can calculate that the reform could save Finland about 60 million per year.
Reija Haara, the supervisor at the Koisoranta service centre, inspects one of the rooms in Koisoranta. There are approximately 300 homeless people in Vantaa. About 50 of them sleep outside or in the stairwells. The Koisoranta service center has a place to sleep for 37 homeless people. Source: Yle, Vesa Marttinen
If the number of homeless people continues to grow, in addition to human suffering, costs will also start to accumulate. As homelessness continues, other problems, such as physical illnesses and mental health and substance abuse problems, begin to pile up.
The government has not calculated how much should be budgeted for treating them.
Source: Yle (in Finnish)
AUTHORThe North Observer