Finland's zero homeless strategy (2021)
oecdecoscope.blog286 points by zdw 3 days ago
286 points by zdw 3 days ago
They also do a lot of compulsory psychiatric detention: https://www.cambridge.org/core/journals/psychiatric-bulletin...
> Finnish mental health legislation takes a medical approach to compulsory measures, emphasising the need for treatment of psychiatric patients over civil liberties concerns... Finland has the highest rates of detention per 100 000 inhabitants, about 214 compared with 93 in the UK and 11 in Italy.
> If at the end of the 3-month period it is considered likely that detention criteria are still fulfilled, new recommendations MII and MIII are filed and the renewed detention is then valid for 6 months. However, this second period of detention has to be immediately confirmed by a local administrative court.
edit: I should mention that I've seen fairly convincing cross-sectional evidence that homelessness is more related to the housing market than mental illness: https://www.ucpress.edu/books/homelessness-is-a-housing-prob... , https://www.nahro.org/wp-content/uploads/2022/08/NAHRO-Summi...
> I should mention that I've seen fairly convincing cross-sectional evidence that homelessness is more related to the housing market than mental illness
This is absolutely the right diagnosis. For instance, SROs used to be very affordable.[1] Placing someone into housing was well within the means of local governments and non-profits.
In Coppola's 1974 movie The Conversation, a large portion of the titular dialogue is about a homeless person Williams' character spots while walking around a crowded Union Square. That's how much homelessness stood out back then.
Fifty years ago in Ontario, Canada if you were a single adult destitute with no income you would be eligible for general welfare which would pay about $180 a month, when the average rent on 1 bedroom apartment in Toronto was about $150 a month. Today, an adult in the same position gets about $800 while rent is $1300. It used to be possible to afford (slummy) housing at market rates, even for the very poor. Now it is not. It can be viewed either as a housing price issue or an income inadequacy issue.
I live near Boston. Part of the housing supply issue here is the mandate for a certain amount of “affordable housing” in all new developments (I forget the percentage, on the order of 10-20% of new units?). This results in either housing not being built, since the developer would not be able to earn enough on the sale of the building due to below-market rent payments, or the non-“affordable housing” units have to pay above-market rates to subsidize/offset the below-market-rate units.
This drives me nuts, because the goal should be for 100% of housing to be affordable. Stifling development or shifting the unaffordability to different areas of the income distribution do not solve the problem. More housing has to get built. This is a supply-demand issue, as anyone with basic economic knowledge can tell you. There are two ways out: people relocate, or more housing gets built.
** "...the goal should be for 100% of housing to be affordable."
In a world where everyone had housing, I wouldn't mind if Taylor Swift built a house for herself that wasn't "affordable."
Fifty years ago Montreal was the business centre of Canada, now that’s Toronto. That $800 rate might actually be more affordable in a less business oriented city, or even Montreal itself since it’s seen a lot of decline in that time. Having said that, there’s zero debate rents are out of control. I own a triplex and every time a unit turns over and i do my research on rent i get a bit shocked. I’ve found myself legitimately concerned how someone can ask for full “market” rate when i know it’s simply not affordable.
A business center doesn't have to be expensive. That’s made to happen because housing isn’t allowed to be built in sufficient quantity, not a necessary consequence of success.
I think quantity is a valid concern but I also think treating housing as a speculative asset is an issue. Housing serves as a valuable speculative asset precisely because quantity is restricted by a variety of factors, but actually using it as a speculative asset raises prices significantly.
Relative scarcity is the necessary and sufficient condition. Either there's enough housing or there isn't (there's a bit of slack with relocations, house sharing and spare bedrooms but it's largely inconsequential.) That means that supply (i.e. quantity) is enough.
It's true that if it was impossible to speculate on housing, there would be less incentive to create artificial scarcity by e.g. lobbying for restrictive land use policies.
> Relative scarcity is the necessary and sufficient condition. Either there's enough housing or there isn't
This seems like an oversimplification. Speculation affects demand, so the amount of speculation is hidden within “relative scarcity”. If there is no speculation then demand is directly related to the needs and finances of potential occupants. If there is speculation then demand becomes connected to the buying power of the wealthy, and thus demand and prices are likely to be higher.
In particular, the wealthy investing class collectively have way, way more money than the renting class, so the finances of the wealthy class distort housing prices upward in ways which dwarf the supply and demand effects from actual renters moving in and out of an area.
Yes, but this speculation is grounded on the possibility of extracting future rents. Which is an assumption about future relative scarcity.
We’ve all decided that it’s totally fine to artificially limit the supply of real estate. Speculation is the market (correctly, in most cases) betting that that will continue.