THUNDER BAY – HOUSING & HOMELESSNESS – As Thunder Bay lurches forward with plans to build an 80-unit “small shed” encampment for people experiencing homelessness, it’s worth looking abroad for inspiration—and perhaps a challenge.
While Thunder Bay’s proposal may provide short-term shelter, countries like Finland have nearly eliminated chronic homelessness altogether, using a radically different model that prioritizes permanent, stable housing first—no strings attached.
So, how did Finland do it—and what lessons might apply to Thunder Bay’s deepening homelessness crisis?
Finland’s Model: Housing First, Services Second
In the 1980s, Finland faced similar issues: a growing homeless population, overstretched shelters, and a rise in tent cities and couch surfing. The country shifted its philosophy from managing homelessness to ending it.
Enter Housing First—a model that flips the traditional approach on its head. Instead of requiring people to get sober, find work, or meet other preconditions before being housed, the model gives them a home first, then surrounds them with wraparound services.
“You can’t solve personal issues from the street,” said Juha Kaakinen, former CEO of Finland’s Y-Foundation, which helped lead the strategy. “Stable housing provides a platform for change.”
Today, Finland boasts virtually zero street homelessness. Everyone has access to permanent, supportive housing, and public savings from reduced emergency services, hospital visits, and police calls outweigh the cost of the program.
Thunder Bay’s Plan: 80 Small Shelters, But Not Permanent Homes
In contrast, Thunder Bay’s current plan to address rising homelessness involves building 80 small insulated shed-style shelters, sometimes referred to as “sleeping cabins,” on city property. Each unit would provide a basic sleeping space—often just 100–120 square feet—with shared access to toilets, showers, and other facilities.
The plan has drawn support from some local advocates who see it as a better alternative to tent encampments. With more than 200 people sleeping rough in the city as of spring 2025, any progress can feel like a step forward.
But critics argue it falls short of addressing root causes—and could even entrench homelessness in a new form.
“These are not homes. They’re boxes,” said one outreach worker who asked to remain anonymous. “They offer no path to stability, no security, and no dignity. We’re building ghettos, not communities.”
The plan according to sources at present is missing several very important components, including a liability study and having the railway sign off on the location because it is near to the train tracks.
Thunder Bay City Administration at 500 Donald Street have also not shared what is planned this summer with placement of tent encampments. Already there are encampments starting along McVicars Creek. There appears no concrete plans in place that city officials have shared with the taxpayers.
There remains so many questions unanswered in 500 Donald Streets rush to push Council to approve the plan. Critics also question why there are so many empty units in Thunder Bay Housing and question why those units are not part of the solution equation.
The shed plan, while aimed at improving safety and conditions for people living outdoors, lacks any real long-term vision, particularly when it comes to offering permanent, supportive housing with access to addiction treatment, mental health care, or employment support.
Even the funding for future years has not been kept up. City Manager John Collin has struck out on this project and should be re-evaluating it.
Cost Comparisons: Efficiency vs. Emergency
Finland’s Housing First strategy required public investment, yes—but it’s been cost-effective. According to the Finnish government, every €1 spent on housing people saves €1.30 in reduced emergency and crisis services.
Thunder Bay’s shed initiative, by comparison, is being developed at a fraction of the cost of building permanent housing units, but it may also require ongoing support, policing, and emergency services, without providing a clear exit path for residents.
Can Thunder Bay Adopt a Housing First Model?
Thunder Bay already has some elements of Housing First in place through Indigenous and non-profit housing providers. But capacity is limited, and consistent funding remains a barrier.
A shift toward a full Housing First approach would mean:
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Building more permanent supportive housing units
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Eliminating the need for transitional shelters
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Investing in health, addiction, and employment services as part of housing packages
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Reframing homelessness as a solvable policy issue, not just a social crisis
Looking Forward: Dignity vs. Desperation
No one doubts the urgency of Thunder Bay’s homelessness crisis. Winter is brutal. Encampments are unsafe. And service providers are overwhelmed.
But Finland’s example shows that a better path exists—one grounded in dignity, permanence, and prevention, not just reaction.
As Thunder Bay prepares to roll out its shed program, the bigger question looms:
Will this be a stopgap or a stepping stone to something better?
