Once you stop forcing people to prove that they are looking for work then you can spread them around the country a bit more.
The point of a universal wage is not to stop people from working though and not living in a big city removes almost any chance of working in most European countries.
A quick Wikipedia check [1] says that there are other towns in Finland, I would expect them to grow a bit. I would also expect people to take a bit of time to decide what kind of work they could do within the new system.
What would an unemployed Finn do currently in that situation? Is their some sort of more generous housing assistance that would be replaced? It seems like the 800 Euro allotment would be enough for 2+ roommates or a couple to afford housing and minimal other expenses.
Housing assistance is up to 80% of rent, up to a maximum of 400 euros per month.
It's a good time to own property in Finland. If I was a landlord there, say I have about 20% vacancy over the year. After this change, I should expect to have a larger pool of applicants because whether they work or not people now have an extra 800 Euros per month that can go directly to a nicer apartment, or at least to one with 2 roommates instead of 4. Joke's on them, though, I just raise my rent cost across the board by 800 Euros per month (probably less as everyone else will want to try and capture this, including other landlords who I'm competing against) and change it around if it's too high until I get back to my acceptable vacancy numbers but with a bigger profit.
Poor people having more disposable income means it's a good time to sell things that they want, like food and shelter. Joke's on them!
Indeed food is another thing whose price will rise. Meaning that because the supply pipeline is relatively fixed, when the demand goes up (due to more people with disposable income) things will either sell out more quickly or the price will go up resulting in a drop in demand to match the previous levels but now more money is in the hands of the suppliers. Only if an increased demand looks very sustainable will a company increase its supply output ahead of schedule.
Wouldn't they just get a job to offset expenses or move to a cheaper city?