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Every night, thousands of Americans, from all age groups and ethnic backgrounds, sleep without the safety, stability and support of family or a home.
In the most recent number reported by the U.S. department of Housing and Urban Development (HUD), 17 out of every 1,000 people in the U.S. are experiencing homelessness at any given day, and since the beginning of 2020, COVID-19 has further exacerbated the issue and increased the risk for the vulnerable homeless population. Furthermore, although we are seeing more and more local & state governments and non-profit organizations introducing new programs and resources to tackle this issue in their respective jurisdictions, it often requires a regional effort that transcends the City and County lines.
In this article, we will take a closer look at the issue of homelessness and ways for local governments to introduce measures to tackle this problem.
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Often viewed as the coastal issue in the U.S., homelessness exists in every small to large city in the United States; however, due to the lack of affordable housing and sky-high rents, we often see a large homeless population in cities like San Francisco, Seattle, New York City and Portland. The Department of Housing and Urban Development (HUD) defines homelessness as:
Source: National Alliance to End Homelessness (2019 Data)
Although the issue of homelessness isn’t simple and clear cut, it’s often divided into two main segments:
As the name suggests, short-term homelessness is often caused by things like job loss, family break-ups and/or domestic violence, etc., and with adequate short-term housing and support, these individuals can find employment and integrate back into society. On the other hand, chronic homelessness occurs when an individual has been without adequate housing for over a year and has some barrier to finding employment or housing, such as substance abuse, disability, mental health crisis, etc.
Furthermore, most minority groups in the United States, including African Americans and the Indigenous population, face homelessness at much higher rates. As the data by National Alliance to End Homelessness indicates, African Americans make up 13 percent of the U.S. population but make up over 40 percent of the homeless population. The predominant reason for these racial disparities can be attributed to the socioeconomic conditions of minority population, rental housing discriminations, incarcerations and access to equitable healthcare.
Source: National Alliance to End Homelessness (2019 Data)
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When addressing the issue of homelessness, local and state policymakers often differ on their approaches:
Throughout the United States, both approaches are widely used; however, the data and experts argue that an adequate housing (under the Housing-First strategy) for the homeless population, before other services, will be the most important step for a homeless individual. The National Alliance to End Homelessness proposes few critical & proven steps for local and state governments to collaboratively tackle the issue of homelessness:
The Workforce Innovation and Opportunity Act introduced by the Department of Labor (DOL) is an example of efforts to “strengthen and improve our nation’s public workforce system and help get Americans, including youth and those with significant barriers to employment, into high-quality jobs and careers and help employers hire and retain skilled workers.”
For decades, increasing rents and home affordability have been the key drivers for homelessness. However, in the recent years this issue has become more bi-partisan at all levels of government and political leaders are recognizing the compounded impacts of homelessness on other local resources. The local and state government should consider a regional collaborative approach to address the issue that’s both equitable and driven by data.
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Disclaimer: The opinions and statements expressed in this article are for informational purposes only and are not intended to provide investment advice or guidance in any way and do not represent a solicitation to buy, sell or hold any of the securities mentioned. Opinions and statements expressed reflect only the view or judgement of the author(s) at the time of publication and are subject to change without notice. Information has been derived from sources deemed to be reliable, the reliability of which is not guaranteed. Readers are encouraged to obtain official statements and other disclosure documents on their own and/or to consult with their own investment professionals and advisers prior to making any investment decisions.