Homelessness Increased 18% in 2024

Homelessness & The Housing Crisis

Homelessness is up 18% this year in the United States.

Reports indicate this is largely due to lack of affordable housing.

Another factor is natural disasters which, we should all be well aware by now, are partly due to climate change.

The U.S. Department of Housing and Urban Development found, in January, that there are more than 770,000 people in the U.S. who are homeless.

It’s important to note this does not include those who stay with family or friends, “couch hopping”, or a variety of other ways (see below) in which people live in highly precarious housing situations that do not “count” as homeless according to statistical technicalities.

It’s also important to note that a disproportionate number of homeless individuals are Black.

Underrepresented homeless people include those who are:

· Single women

· LGBTQ+

· Older adults

· Those experiencing so-called “episodic” homelessness— meaning brief periods of homelessness or periods with unstable housing.

· “Couch hopping” aka. “couch surfing”

· Unaccompanied youth (may include those who have left home due to abuse or deeply problematic home life)

· Rural homeless populations

One positive note is that there has continued to be a reduction in the number of homeless veterans. Policymakers point this out as a roadmap for addressing homelessness on a larger scale.

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One step away.

It’s sadly easy for people to look at homelessness as a problem that is someone else’s problem. The reality is that far too many are, as the saying goes, “one step away” from homelessness. This might be a person or family living paycheck to paycheck. This might be a person who relies on entitlements such as Medicaid or Medicare to remain fed and housed. We’re not even talking about medical care (let alone decent medical care).

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Why are more people “one step away” from homelessness?

What about the relationship between being unhoused and lack of access to affordable housing?

Well, for one reason, lack of affordable starter homes.

“Finding an affordable place to live in the U.S. can feel pretty impossible whether you're a renter or a buyer.” (NPR)

“To begin with, there's a massive shortage of homes — somewhere between 4 and 7 million. And those who are able to find homes are spending a much bigger chunk of their paycheck than in recent years.”

Some of the problem relates to NIMBY laws. NIMBY, “Not in my back yard”, basically boils down to homeowners not wanting to allow different forms of housing, or easing of regulations, in their neighborhood. Sounds familiar, right? A little like immigration policies?

Here’s a look at median home prices over the past seven decades and average interest rates on a 30-year fixed-rate mortgage which Warren Buffet used to say was the best possible investment (for regular folks).

Median home prices by state. Here’s a more granular look at home prices— I appreciate the inclusion of % of home value vs. % of household income.

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How are we going to create more starter homes?

If you look at the data, we’re not building enough starter homes for everyday Americans.

Why? Because there’s no money in it.

Building homes that sell for $150,000 when the average home price is $300,000+ is not how supply and demand operates under capitalism.

Many people cannot afford to leave their “starter homes”. Meaning that their once starter home is now a forever home due to lack of agency.

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What does a starter home even look like anymore?

Maybe something in the vein of an unintentional “tiny house”. 750-1000 sqft. 2 bed. 1 bath. Like a row home or a very small rancher (or “Cape Cod” style A-frame house).

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And then there’s the question of buying being a more affordable option than renting.

Currently, it’s difficult to make the math work.