Unfortunately the situation isn't solved in Scandinavia or Finland either. I've seen plenty of homeless looking people in Sweden sleeping around Stockholm. Many of them seemed like immigrants, not sure what the situation is there. I doubt they're all those pretend homeless beggars. And with Finland we have our own homeless. Even with housing and all kinds of programs to help people and whatnot, some don't take the housing, want to go into programs and so on. Usually it's addiction (often alcohol, drugs have become more common though) or mental health related. I'm not sure what could be done about that that isn't being done or tried already.
We're capitalist countries too, we just have extensive social safety nets. But there always seems to be people who fall through the cracks, for one reason or another.