The cornerstone of unity

62 NO SLUMS
Helsinki was founded in 1550 but, having experienced several large fires, it has only been truly constructed after 
1809. With the exception of old manors, no neighbourhoods in Helsinki were built exclusively for wealthy people. 

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In the districts of e.g. Kruunuhaka and Ullanlinna, apart from the more expensive houses, there were always 
small rented flats too, although these would face towards the courtyard. 
International guests often ask where Helsinki’s slums are, and they become rather suspicious when they hear 
the answer: there are no slums in Finland. 
This lack of slums can be explained by factors related to general economic development including: small 
income disparities compared to other countries, a highly developed Nordic welfare state, and a relatively small 
proportion of immigrants. The City of Helsinki’s housing policy has also had a strong impact on this development. 
First of all, Finnish municipalities have more extensive self-governance, including the power to raise taxes, 
than their counterparts in any other European country (innovation no. 4). Secondly, due to both historical 
reasons and intentional policies, the City of Helsinki is an important landowner within its borders, possessing 
approximately 70% of its territory. Town planning in Finland has also been left entirely in the hands of the 
municipalities. The City of Helsinki can thus implement a fairly strong housing policy if it so desires. 
Over the last 50 years the City of Helsinki has practised an intensive social housing policy, even to the extent 
that, especially in recent years, neighbouring localities have seen a jump in their tax revenue. 
Almost without exception, new housing areas are planned according to the concept that there must be 
accommodation to suit all social classes. Rich and the poor live side by side, and social housing (innovation no. 
60) is no different in quality or appearance from so-called hard money housing. 
The City of Helsinki’s housing policy has naturally been influenced by state subsidies and directives. Helsinki 
was a wealthy city for a long time and state subsidies for housing were considerable, but 
the State’s contribution 
has gradually declined since the early 1990s. At the same time, the state has substantially cut the city’s share of 
corporate tax revenues. The municipalities are thus obliged to compete with each other for “good taxpayers”. 
It remains to be seen whether the social housing policy implemented in Helsinki can withstand external 
attacks. 
The principle of social mixing can be considered a significant social innovation. Inequality related to dwelling 
place and housing conditions can easily give rise to hereditary marginalisation and disadvantages, but we have 
been able to prevent this unfavourable development in Helsinki, at least for the time being. 
Pekka Korpinen 
– Deputy Mayor of Helsinki 1991–2007