Can America afford to end Homelessness?
Its no secret how much of a problem homelessness has become in the United States. In 2023, at least 653,104 people experienced homelessness. Rates are increasing, Cities are struggling to work solutions, and the public is getting fed up. But how much would it cost to finally end homelessness, and how reasonable is the cost?
Here’s what the Scioto Analysis did. They explored this by looking at the potential costs associated with supporting the homeless population with permanent housing. By calculating the average cost of housing a homeless person, they multiplied this figure by the total homeless population, resulting in an estimate of approximately $30 billion.
However, The Scioto Analysis did not stop there; they also looked into the costs of renting accommodations for the homeless, and found an estimate which was significantly lower at around $11 billion. This gave an alternative to providing permanent housing, one that was more cost effective.
However, they compared the financial implications of addressing homelessness against the annual spending by the United States on programs such as the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps, and the total refunds from tax cuts. When looking at it that way, it becomes easily apparent how relatively cheaper ending homelessness would be, bringing into question the real reasons why we aren’t paying the 30 billion to end homelessness.
Cost to house the Homelessness vs other government programs (In Bn)
While you would be providing the homeless with housing, this cost fails to incorporate the other needed costs for keeping the homeless in housing. Many homeless deal with mental illnesses, disabilities, and relational poverty which are additional problems that require outside assistance to solve.
Others point to a lack of moral for the reasoning behind not spending the 30 billion, as some might see this cost as unnecessary and a waste of the national budget.
However you see it, it is vital for us to consider if this truly is a cost effective method when looking at how much is spent annually on homeless shelters, and the huge medical bills that the homeless accumulate. To conclude, homelessness continues to be a problem, and while 30 billion dollars doesn’t quite address every issue that faces the homeless population, it might turn out as a more cost effective method then continuing what the country is currently doing.