How Governments Can Combat Homelessness

Homelessness continues to be one of the most vexing and complex problems facing America. There is a myriad of reasons people become homeless, how they experience homelessness, and how long they remain homeless. Ending the current homelessness crisis will require additional thought, effort, and commitment from state and local governments.

State government can take steps to prevent people in their charge from experiencing homelessness. Formerly incarcerated individuals are estimated to be 13 times more likely to experience homelessness. Youth in foster care become homeless 20 -25% of the time after aging out. State custodial systems need to provide these populations with skills to find and maintain employment and housing that supports their move to independence. With an estimated one-third of the homeless suffering from mental health issues, states can also improve access to behavioral health and substance abuse treatments through increased funding and adoption of new approaches such as telehealth.

State and local governments can play a role in the critical need to increase the housing supply. The recently published book “Homelessness is a Housing Problem” by Gregg Colburn and Clayton Page Aldern, found that homelessness directly correlates to the tightness of the housing market. Examination of land use and development regulations by state and local governments can reveal if reasonable changes can be made to increase the supply of housing. One example is changing zoning to permit Accessory Dwelling Units as done in California, Chicago, Minneapolis, and other locations. Another approach is identifying and supporting the development of underutilized government owned land as is currently underway in Atlanta.

One fast and cost-effective way of increasing the supply of housing is to tap into existing underutilized housing through “shared housing.” For people living in a house with empty bedrooms, a roommate could provide additional income and companionship. Entities like Home Share Oregon provide a roommate matching service. In 2021, the U.S. Department of Housing and Urban Planning released a comprehensive “Assessments of Shared Housing in the United States” and issued new guidance on using Housing Choice Vouchers in shared housing.

State and local leaders should engage the homeless to determine the characteristics of housing that will best meet their needs in a cost-effective and impactful way. Too often, people who are homeless will turn down emergency shelters, supportive housing, and even regular apartments to live on the street or in an encampment. Emergency shelters can be dangerous and require leaving the facility with all personal possessions in the morning. Traditional efficiencies and one-bedroom apartments are one of the most common “Housing First” options. However, these apartments are expensive to develop and often rejected by people who are homeless. Opportunity exists to reinvent and modernize inexpensive housing options, such as cubicle hotels, lodging houses, and residential hotels, that were redeveloped or regulated out of existence. People who are homeless can help identify housing options that are better alternatives to the streets and foundations can assist by providing funding for these initiatives.

Governments should be aware that the approach of giving people who are homeless priority for Housing Choice Vouchers and public housing units can help some people, but is not a real solution. Unless this approach increases the funding for housing programs, it just reallocates existing funding. Further, the approach can be counterproductive because people who were homeless often have less income and require a greater rent subsidy. The increased subsidy cost results in the housing authority issuing fewer vouchers that help and house fewer people.

Solving homelessness doesn’t necessarily require more money. Studies have consistently shown it is less expensive to house people than to pay the numerous direct costs associated with unsheltered living such as increased demand for public safety and emergency rooms. Solving the crisis will require that governments increase collaboration on approaches, policies, and funding.

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