Over 25,000 households urged to seek affordable housing in Finland

Over 25,000 households receiving social assistance in Finland have been urged by the Kela social insurance agency to seek more affordable housing following a recent legal amendment. Sami Piekiäinen, 34, is among those affected, now required to pay the difference between his rent and Kela’s maximum allowance or find a cheaper place to live. Experts warn that stricter policies may lead to an increase in youth homelessness, particularly as affordable housing remains in high demand, especially in urban centers.

The legal change stipulates that Kela will no longer provide flexibility regarding municipal rent limits unless there are exceptional circumstances, such as advanced age or poor health. In Piekiäinen’s case, his rent exceeds the limit for the city of Tampere by 43 euros. Previously, Kela covered the full rent, but now he must either move or pay the excess himself.

This tightening of regulations is part of broader government cuts to social welfare, expected by Kela to save over 70 million euros by 2027. Youths aged 30 and under accounted for about a third of the approximately 129,000 adult social assistance recipients as of August.

The situation has forced many young individuals to revert to living with their parents or face homelessness if they cannot find suitable housing within the Kela limits. The search for affordable rentals is increasingly challenging, with significant competition in larger cities. Despite existing housing programs, the number of suitable options is insufficient to meet the needs of low-income tenants.