We know how to end homelessness. We just won't pay for it

Japan has the lowest measured rate of homelessness compared to other wealthy nations. Finland stands out as the only European country that has successfully reduced homelessness over decades. The methods they employed to achieve this are quite different. Japan focused on mass production and maintaining low costs, while Finland stopped requiring people to earn a home before providing one.

Comparing countries on homelessness is tricky as each nation defines it differently. Despite this, Japan and Finland are frequently mentioned as examples of successful models. In Australia, there were 122,000 homeless individuals counted during the 2021 census, with 289,000 people receiving assistance from specialized homelessness services in 2024-2025.

As of January 2026, Japan reported a record low of 2,481 people sleeping outdoors nationwide, down from over 25,000 in 2003. Ten of Japan's 47 prefectures now have zero recorded instances of homelessness.

Japan's approach is starkly different from Finland's. While Finland adopted the Housing First policy in 2008, which provides housing first and support afterwards, Japan builds homes at a rapid pace and at a low cost. Finland's Housing First policy requires no sobriety, treatment, or employment before a tenancy is granted, and support is provided afterwards if needed. As a result, homelessness in Finland dropped from 18,000 in 1987 to under 5,000 by 2019, with 80% of those given an apartment keeping it.

Australia, however, has not followed these models. Every country counts homelessness differently, making comparisons unreliable. In Australia, 122,000 people were counted as homeless in 2021, with 289,000 receiving help from specialist homelessness services in 2024-2025. Finland treats a home as the precondition for recovery, while Japan uses livelihood protection payments and self-reliance support laws to achieve similar results.

Helsinki, the capital of Finland, owns 70% of the land within its boundaries and sets a target for new housing, allocating 45-50% for private ownership, 40% for rental, 10-15% for intermediate housing, and much of the rest for long-term regulated rentals. In Australia, governments must negotiate with private developers, which often stalls inclusionary zoning debates.

Finland has funded housing advice since 2009, helping people deal with overdue rent and eviction threats, while Australia's services now turn away around 353 requests for help daily, mostly from women and children.

Japan's success in reducing homelessness is closely linked to its building capacity. Zoning, which decides what can be built where, is set nationally, reducing roadblocks to rapid construction. Japan also builds using prefabricated housing, which accounted for 12.6% of new dwelling starts in 2023. This method allows for quick and cheap production of small, safe, permanent homes.

Meanwhile, Australian dwellings completed per hour worked have fallen 53% since the mid-1990s. Finland's success in housing reform is also due to its financing of housing acquisition, renovation, and construction. Australia's rights-based policy without corresponding construction pipelines is merely a press release. The key takeaway is that small, safe, permanent homes can be produced quickly and cheaply enough to make a difference.