The True Cost of Homelessness — October 19, 2023

The true cost of homelessness is not a simple number. Homelessness takes a toll on the individuals experiencing it and our collective society physically, morally, spiritually, and financially. The greatest cost for those experiencing homelessness is seen in significantly reduced life expectancy: in Minnesota they have a rate of death 3 times higher than the general population. The dollars and cents of a life outside is also very high, with over $44,700 of taxpayer dollars spent a year on a single chronically homeless person. Thankfully, we know that the solution – housing – is far more affordable than the cost of the status quo.

People experiencing homelessness are far more likely than the rest of the population to find themselves in expensive emergency rooms, detox programs, mental health care facilities, and jails. This risk of mortality is higher still for people of color experiencing homelessness, who are significantly more likely to find themselves facing homelessness. A study in California found that people experiencing homelessness have a high prevalence of chronic health conditions and that “nearly half (45%) of study participants reported having fair or poor health… Self-reported fair or poor health is a simple but important measure of health; those who report it have a higher likelihood of being hospitalized or dying in the coming years.”

Sadly, the moral and physical injuries to people experiencing homelessness is significant. The California study found that 36% of participants had experienced having personal property confiscated by authorities in the last six months, including important documents like ID cards and birth certificates. Experiences of physical and sexual violence is extremely common. Death from substance use is 10 times higher among people experiencing homelessness in Minnesota compared to the general population.

Contrast the high cost of homelessness to the average price of a year of permanent supportive housing – $29,156.It’s clear that the benefits of compassion and care are worth the cost. Housing offers safety, dignity, and significantly improved health. When people living with HIV transition out of homelessness and into Clare Housing, we find that, year over year, at least 80% of our residents are retained in care with a healthcare provider. On average, 90% are able to maintain or achieve an undetectable viral load, meaning they are no longer able to transmit HIV to others, (compared to 64% of people living with HIV in Minnesota in 2022).

The price of housing is too high for many of our neighbors – but the price of homelessness is far higher, and it costs all of us.

References

https://endhomelessness.org/wp-content/uploads/2017/06/Cost-Savings-from-PSH.pdf
https://homelessness.ucsf.edu/our-impact/our-studies/california-statewide-study-people-experiencing-homelessness
https://www.health.state.mn.us/communities/homeless/coe/coephhmr.pdf
https://www.kff.org/health-costs/state-indicator/expenses-per-inpatient-day-by-ownership/