More and more people in the United States are becoming homeless, and the high cost of housing plays a big part in this problem. But why is this the case? And how have some communities tackled the issue?
What’s Happening with Housing Costs?
Housing prices and rents keep going up, especially in big cities. Many families now spend more than half their money on a place to live. When housing takes up so much of people’s income, they have less money for food, healthcare, and other basic needs.
This problem is getting worse because:
- Not enough affordable homes are being built
- Wages aren’t keeping up with housing costs
- There aren’t enough programs to help people afford housing
Here’s what this looks like in some major cities:
| City | Average Monthly Rent | Number of Homeless People (per 10,000 residents) |
|---|---|---|
| San Francisco | $3,500 | 83 people |
| New York | $3,200 | 66 people |
| Los Angeles | $2,500 | 64 people |
| Seattle | $2,300 | 55 people |
Why Are Housing Costs Rising?
Several things make housing expensive:
- More people want to live in cities than there are homes available. When many people try to rent or buy in the same area, prices increase because there aren’t enough homes for everyone. This happens often in cities with many jobs, good schools, and public transportation.
- Building new homes costs a lot of money. Construction materials have gotten more expensive, and workers need to be paid fair wages. These high costs mean builders often create expensive homes instead of affordable ones because they want to make back the money they spent.
- Some neighborhood rules make it hard to build affordable housing. Many areas only allow single-family homes and not apartments. These rules, called zoning laws, limit how many homes can be built and make the homes that do get built more expensive.
- Banks charge high interest rates for home loans. When interest rates are high, monthly payments for buying a home increase. This makes it harder for people to buy homes, so more people need to rent, which drives up rental prices.
For example, San Francisco has seen many new tech companies bring high-paying jobs to the city. This led to higher rents that many long-time residents can’t afford. The same thing happened in New York City, where expensive new buildings replaced affordable ones, forcing many families to leave their neighborhoods.
How Does Expensive Housing Lead to Homelessness?
When housing costs too much, people face hard choices. These choices often start a chain reaction that can lead to homelessness. Here’s how it happens: Most experts say housing should cost no more than 30% of your income. But when rent is very high, people might spend 50% or even 70% of their money just on housing. This leaves very little for other needs, and no way to save money for emergencies. Then, if something goes wrong – like a car breaking down or a medical emergency – people can quickly lose their housing.
They might:
- Skip meals to pay rent. When most of your money goes to housing, you might not have enough left for food. Some families eat less or choose cheaper, less healthy foods to make sure they can pay their rent on time.
- Put off getting medical care. People often avoid going to the doctor or dentist when they need to save money for rent. This can lead to small health problems becoming bigger, more serious ones.
- Move to unsafe housing. Some people move to buildings with problems like mold or broken heating to pay less rent. These conditions can make people sick and are especially dangerous for children and older adults.
- Live with too many people in one home. Families might share apartments meant for fewer people to split the rent. This overcrowding can cause stress, make it hard for kids to study, and create unsafe living conditions.
- Fall behind on rent and face eviction. When an unexpected expense comes up, like a car repair or medical bill, people might not be able to pay their full rent. Missing even one rent payment can lead to eviction, which makes it much harder to find housing in the future.
Each of these choices creates risks that can lead to homelessness. Here are some real examples of how this happens:
- A family spending 60% of their income on rent has to skip regular medical check-ups. The mother develops a treatable health condition, but because she can’t afford care, it gets worse. She misses two weeks of work, loses her job, and the family can’t pay rent. After falling three months behind, they’re evicted.
- A senior citizen on a fixed income lives in an apartment where the rent keeps rising. To keep paying rent, she cuts back on food and medicine. When the building’s heat breaks in winter, she uses a space heater that increases her electric bill. Unable to pay both rent and utilities, she faces eviction.
- A young worker pays high rent but manages to get by. Then his car needs expensive repairs. He can’t get to work without the car, so he uses his rent money to fix it. Now behind on rent and unable to catch up, he loses his apartment. With an eviction on his record, other landlords won’t rent to him.
- A single parent with two kids lives in an expensive apartment. To afford it, she shares the space with another family. The overcrowding violates her lease. When the landlord finds out, both families are forced to leave. With high rents everywhere and bad rental references, they can’t find new housing.
These examples show how expensive housing creates a trap: people spend so much on rent that they can’t build savings or handle emergencies. One setback – a missed paycheck, an illness, a car repair – can start a chain of events leading to homelessness. Even people with jobs and steady incomes can end up homeless when housing costs too much of their money.
Making Progress
Some cities are finding ways to help. They’re:
- Building new affordable housing. For example, Denver created a program that helped build 6,000 new affordable homes over five years. They used money from local taxes to work with builders who agreed to keep rents low. Boston is turning unused city buildings into affordable apartments.
- Protecting renters from unfair evictions. Philadelphia started a program that gives free lawyers to people facing eviction. This helped many families stay in their homes. Seattle requires landlords to give more notice before raising rent, giving tenants time to plan or find new housing.
- Creating programs that combine housing with job training and healthcare. Salt Lake City has a program that gives people both a place to live and help finding jobs. They also provide mental health services and addiction treatment in the same location. This helps people stay housed and become more independent.
- Working with landlords to accept housing vouchers. In Minneapolis, the city offers landlords extra money and support if they rent to people using housing vouchers. They also help pay for repairs and work quickly to solve any problems. This has helped hundreds of families find stable housing.
As the examples above clearly show, housing costs and homelessness are big problems but are solvable. We can solve them by working together. Every person deserves a safe, stable place to live, and there are ways we can make that happen.
Moving Forward
Solving homelessness means fixing housing costs. We need:
- More affordable homes
- Better wages so people can afford housing
- Strong programs to help people stay in their homes
- Communities that support solutions
By understanding how housing costs affect homelessness, we can take steps to help everyone in our communities have a place to call home.
Additional Resources:
If you want to learn more about housing costs and homelessness, or if you need help, these organizations offer free information and support:
- The National Low Income Housing Coalition provides information about affordable housing in your area and ways to take action.
- The Department of Housing and Urban Development offers resources to help find affordable housing and learn about your housing rights.
- The National Alliance to End Homelessness shares research and solutions about preventing homelessness.
- 211.org connects people to local organizations that can help with housing, food, and other basic needs. Just dial 211 on your phone or visit their website.
- The National Coalition for the Homeless provides education about homelessness and connects people with local resources.
- Local housing counselors approved by HUD offer free advice about housing problems. Find one near you at HUD’s housing counselor search tool.
