Homelessness in the U.S. is a complex issue that has affected as many as 653,104 in 2023, an increase of 12% from 2022. Various interrelated factors contribute to this crisis, including economic instability, lack of affordable housing, mental health challenges, and systemic inequalities.
Understanding the reasons behind the crisis is essential to solving the problem; here is a list of eleven reasons why the United States struggles with homelessness.
Low Wages
Low wages are one of the main reasons why the U.S. struggles with homelessness, as many workers find their earnings insufficient to meet the rising cost of living, particularly housing. For instance, a full-time worker would need to earn approximately $25.82 per hour to afford a modest two-bedroom rental. Yet, the federal minimum wage remains at just $7.25, leaving many employed individuals unable to secure stable housing, thereby leading to homelessness.
Unemployment
Unemployment is one of the main reasons behind homelessness in the United States. People experiencing unemployment are more likely to become homeless as they will not be able to afford housing and utility costs. Nationwide, unemployment rates among the homeless population range from 57% to over 90%.
Being jobless while experiencing homelessness creates a vicious cycle, as it becomes increasingly difficult to secure employment without a stable address or access to basic resources.
Lack of Affordable Housing
One of the primary reasons for homelessness in the U.S. is the lack of affordable housing. The median selling price of a house in the U.S. is $439,455, and the median rent is $2110, but the average income is only $59,000.
Additionally, a significant portion of the population spends more than 30% of their income on housing, which is often considered the threshold for affordability. This financial strain leaves little room for other essential expenses, making it difficult for families to maintain stable housing.
Domestic Violence
Domestic Violence is one of the major reasons why the U.S. struggles with homelessness. According to studies, 38% of all domestic violence victims become homeless at some point in their lifetime. Many survivors are economically dependent on their abusers, which complicates their ability to secure safe housing after leaving an abusive relationship. Furthermore, the absence of sufficient emergency shelters and affordable housing options exacerbates their vulnerability, forcing them to choose between staying in dangerous situations or facing homelessness.
High Healthcare Costs
High healthcare costs significantly contribute to the homelessness crisis in the United States, as many individuals experiencing homelessness often rely on emergency services for their medical needs. The lack of primary and preventive care pushes homeless individuals to visit emergency rooms (E.R.), which can cost anywhere between $700 and $3400 per visit. The high costs further push people into poverty and homelessness by draining them of all their money.
Poverty
Poverty is one of the main reasons why the U.S. struggles with homelessness. 37.9 million Americans live in poverty, and the lack of financial resources means that many are just one crisis—such as a job loss, medical emergency, or unexpected expense—away from eviction and homelessness. The high cost of living, particularly in urban areas where job opportunities are concentrated, further exacerbates this issue, as wages often do not keep pace with rising housing costs. Many low-income households struggle to afford basic necessities like food, healthcare, and childcare, making it nearly impossible for them to afford housing, leading to homelessness.
Mental Health Issues
Mental health issues significantly contribute to homelessness in the United States, with studies estimating that 21% of homeless individuals suffer from severe mental disorders such as schizophrenia or bipolar disorder. The lack of adequate community-based support and affordable housing has led many individuals with untreated mental illnesses to end up on the streets. Once homeless, the daily challenges and trauma of living without stable housing can worsen existing mental health conditions and lead to higher rates of substance abuse and victimization.
Addiction
According to the United States Department of Housing and Urban Development (HUD), 16% of homeless individuals reported a substance use disorder. Addiction is one of the primary reasons for homelessness. This relationship between homelessness and addiction is often cyclical; many individuals turn to substances to deal with the stress and trauma of living on the streets, while addiction can lead to job loss and financial instability, further exacerbating their housing insecurity. This is proved by surveys that report that substance abuse is the major cause of homelessness in 68% of adults.
Racial Inequality
According to the National Coalition for the Homeless, 78.3% of individuals experiencing homelessness are people of color. Racial inequality is a significant factor in the homelessness crisis in the United States, with people of color disproportionately affected by housing instability. People of color often experience higher levels of homelessness because of economic disparities like low wages and higher unemployment rates, discriminatory housing practices, and limited access to resources.
Insufficient Government Assistance
Insufficient government assistance is a major reason why the United States struggles with homelessness, as many local and state governments struggle to provide adequate resources and support for vulnerable populations. Despite the establishment of government assistance and funding programs, support remains insufficient compared to the scale of the problem. Many public assistance programs have seen cuts or limitations, which reduces access to essential services like affordable housing, healthcare, and substance abuse treatment.
Lack of Education
Lack of education contributes significantly to homelessness. Over 1 million students are facing a homelessness crisis in the U.S., and the rate of homelessness among students has been steadily increasing since 2004. Research indicates that young adults who do not complete high school are 4.5 times more likely to become homeless compared to their stably housed peers. Lack of education leads to low-paying jobs or unemployment, leading to homelessness. This is especially true in cities where jobs are competitive and require high levels of education and qualifications.