Rent And Homelessness

If it seems as if homelessness in the US has become an issue, it is because it has. It isn’t a case of perception of an eternal situation.

“As recently as the 1970s, when rents as a share of income were far lower, homelessness was rare in the United States…” – Pew Trusts

The conventional wisdom of fifty years ago no longer applies. It has become harder to own a home (something to cover in another post), which means more people are renting – if they can find a place to rent, and if they can afford it.

“Throughout the United States, rents have reached all-time highs. Half of renters nationwide now spend at least 30% of their income on rent, and a quarter spend at least 50%.” – Pew Trusts

While some prefer to blame homelessness as a failing of a person’s character, the data shows otherwise.

“…housing costs explain far more of the difference in rates of homelessness than variables such as substance use disorder, mental health, weather, the strength of the social safety net, poverty, or economic conditions.” – Pew Trusts

Homelessness, or at least affordable housing, also correlates with housing supply. Supply and demand remain key economic factors. In this case, the issue is particularly the supply of lower-income housing. Lots of high-end houses can be profitable and visually appealing, but lower-income housing helps house people.