Housing First: A Proven Strategy Canada Cannot Afford to Ignore

Housing First has successfully reduced homelessness in Finland, Iceland, and Japan by treating housing as a basic right and pairing it with support services. Canada must follow their lead by enshrining Housing First into law and prioritizing permanent solutions over temporary shelters.

Nishant Mathew

9/30/20253 min read

a row of small houses sitting next to each other
a row of small houses sitting next to each other

Homelessness is often treated as a natural byproduct of modern cities, as though nothing can be done to change it. Yet some of the world’s most successful strategies prove otherwise. Countries such as Finland, Iceland, and Japan have drastically reduced homelessness by adopting Housing First, a model built on a simple yet radical premise: housing is a basic human right, not a privilege to be earned.

How Other Countries Do It:
Finland
is the most cited success story. In the 1980s, the country had one of the worst homelessness crises in Europe. Today, it is the only European country where homelessness is declining (Housing First Europe Hub, n.d.). From 2008 to 2020, overall homelessness in Finland dropped by nearly half, and long-term homelessness fell by more than 70% (Housing First Europe Hub, n.d.). The government achieved this by making Housing First a national policy, transforming shelters into permanent apartments, and ensuring that municipalities, social services, and housing associations worked together (HUD, 2020). Support is offered alongside housing—such as addiction treatment, counseling, and job programs—but housing itself is never conditional.

Iceland has followed similar principles. Despite a small population, the country faced rising homelessness in the 2000s, especially in Reykjavik. By committing to rapid access to housing with individualized support, Iceland ensured that most people experiencing homelessness were not left to cycle endlessly between shelters and the

streets (End Homelessness, 2023). Their approach treats housing not as a “reward” after rehabilitation but as the foundation on which recovery becomes possible.

Japan, while culturally and economically distinct, also offers lessons. Homelessness there has been addressed through a combination of housing guarantees and strong employment reintegration programs. Public housing access is expanded for vulnerable populations, and community-based initiatives provide both stability and dignity (Homelessness Impact, 2021). The number of people sleeping on the streets in Japan has declined from more than 25,000 in 2003 to under 4,000 in recent years (Homelessness Impact, 2021). While Japan’s homelessness rates were never as high as those in North America, its firm belief in preventing long-term street homelessness aligns with the Housing First ethos (DevelopmentAid, 2023).

Why These Strategies Work:
The success of Housing First comes from rejecting the “staircase model”—the idea that people must first conquer addiction, find a job, or prove “worthiness” before being housed. Evidence shows this model traps people in cycles of instability. Housing First flips the script: once housed, individuals are better able to address mental health challenges, secure employment, and rebuild their lives.

In Finland, over 80% of those housed through the program remain in permanent housing years later (SDG16.plus, 2023). Studies in North America also show cost savings: providing housing plus supports is far cheaper than paying for emergency shelters, policing, and hospital visits (End Homelessness, 2023). Housing First is not only more humane—it is also more fiscally responsible.

What Canada Should Do:
Canada’s homelessness crisis continues to grow despite decades of piecemeal programs. The federal government’s 2017 National Housing Strategy made progress, but the results have been inconsistent. Many cities, from Toronto to Vancouver, still rely heavily on shelters rather than permanent solutions.

Based on the global evidence, Canada should:

  1. Enshrine Housing First into law as Finland has done, making housing a guaranteed right rather than a patchwork program (SDG16.plus, 2023).

  2. Convert shelters into permanent units, ensuring municipalities prioritize long-term stability instead of temporary fixes (HUD, 2020).

  3. Scale supportive housing—pairing homes with mental health services, addiction treatment, and employment programs (End Homelessness, 2023).

  4. Increase public housing supply through federal-municipal partnerships, rather than relying on the private market to solve the problem (Housing First Europe Hub, n.d.).

  5. Invest in prevention—ensuring that people leaving prisons, foster care, or hospitals are immediately provided with housing to stop new inflows into homelessness (Homelessness Impact, 2021).


Housing First is not a utopian dream—it is a tested reality in countries that once faced the same problems Canada struggles with today. The question is not whether it works, but whether Canada has the political will to adopt it fully. If Finland can make homelessness rare and brief, there is no reason Canadians should accept tent cities and shelter overflows as inevitable. Housing is the first step, and without it, every other effort will continue to fall short.

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