Teija Ojankoski, CEO of Finland’s largest national non-profit housing provider Y-Säätiö, analyses her country’s success in reducing homelessness through the ‘Housing First’ approach – a model grounded in the belief that having a home is a matter of dignity, and that permanent housing should be the starting point – not the end point – of support. Yet despite strong results, challenges remain.

By Teija Ojankoski

Finland’s adoption of ‘Housing First’ represents one of the most comprehensive transformations of homelessness policy in Europe. Rather than relying on shelters, hostels and staircase pathways, Finland carried out a national transition away from a shelter-based system and towards Housing First, grounded in the idea that permanent housing is the starting point – not the end point – of support.

This shift was built on the premise that housing is a matter of dignity, a constitutional right, and a foundation for equal citizenship. Since 2008, this shift has been guided by national programmes that provide dedicated funding, set measurable housing targets and develop strong municipal and NGO partnerships. Crucially, homelessness policy is tightly linked to housing policy and the wider welfare state. A large cost-based social and affordable rental sector, combined with income support and housing allowances, has meant that homelessness caused purely by income poverty has been largely prevented.

In practice, the transition has meant converting large shelters into supported housing units, phasing out dormitory accommodation and massively expanding scattered-site apartments with support. Y-Säätiö (Y-Foundation in English) has played a central role by acquiring dwellings across the country and developing permanent supported housing options aligned with key Housing First principles: housing without preconditions; harm reduction; choice and autonomy; separation of housing and treatment; and flexible, recovery-oriented support. Most importantly, the Finnish model emphasises broad principles rather than strict programme fidelity, giving room for local adaptation while maintaining the rights of residents at its core.

Finland’s outcomes are well-documented. Homelessness, particularly long-term homelessness, has steadily decreased for more than a decade after the introduction of the Housing First approach in 2008. Research shows improvements in housing stability, well-being and access to services once people obtain a permanent home. Interviews with frontline workers highlight the transformative role of having one’s own door and tenancy agreement; a home becomes not only a physical space, but also evidence of full societal membership, granting privacy, protection and self-determination.

Yet progress has not been without challenges. The success of Housing First depends heavily on accessible community services, especially mental health and substance use treatment, and on the availability of income support to pay rents. Another challenge concerns social inclusion. While housing ends homelessness, it does not automatically end loneliness or marginalisation. Some residents struggle with limited opportunities for interaction, meaningful activities or integration into neighbourhood life. In scattered housing, people may feel isolated; in supported units, ‘bubbles’ can form, limiting broader participation. Achieving social inclusion requires attention not just to individual support but to the systemic and environmental factors that shape daily life.

Looking beyond Finland, many of the cornerstones of Finland’s successful homelessness policies are now reflected in the new recommendations published by the European Commission’s Housing Advisory Board on 20 November 2025. The recommendations underline that ending homelessness should be the explicit goal of homelessness and housing policies. This goal will not be achieved without strong emphasis on permanent housing or without scaling up the Housing First approach. The Board’s recommendations were prepared to support the upcoming European Affordable Housing Plan, which the Commissioner for Energy and Housing, Dan Jørgensen, is expected to launch in mid-December.

Y-Säätiö recently published a research report as part of the EU’s Erasmus+ Adapting Housing First project, which examined the implementation of Housing-First-oriented homelessness work in Finland, Germany, Ireland and Spain. The aim of the project and the research was to explore how Housing First policies could respond better to the homelessness challenges faced across Europe and how they could be scaled up.

At the core of the Adapting Housing First project was a simple but crucial insight: Housing First has yielded good results, but it is still limited in scope. To fully realise its potential, the model needs to be expanded beyond narrow target groups and pilot projects and actively adapted to local welfare systems, housing markets and organisations. The project report shows that this can be done without losing sight of core principles such as housing as a right, choice, harm reduction and long-term support. At the same time, Europe is now in a favourable moment to move this work forward. Effective practices exist in many countries, political will is growing, and there is research to guide both the design of national strategies and their practical implementation on the ground.

Teija Ojankoski is CEO of Y-Säätiö (the Y-Foundation), Finland’s largest national non-profit housing provider and a key actor in Finland’s long-term work to end homelessness through the Housing First approach. She is a member of the European Commission’s Housing Advisory Board, chaired by Eamon Ryan, which advises Commissioner Dan Jørgensen on the European Affordable Housing Plan and policies to tackle the housing crisis across Europe.