Causes of homelessness
Insufficient income and lack of affordable housing are the leading causes of homelessness:
o In 2012, 10.3 million renters (approximately one in four) had “extremely low incomes”
(ELI) as classified by HUD.35
In that same year, there were only 5.8 million rental units
affordable to the more than 10 million people identified as ELI.
36
o Additionally, only 31 out of every 100 of these affordable units were actually available to
people identified as ELI.37
After paying their rent and utilities, 75% of ELI households end up with less than half of their
income left to pay for necessities such as food, medicine, transportation, or childcare.38
The foreclosure crisis also played, and continues to play, a significant role in homelessness:
o In 2008, state and local homeless groups reported a 61% rise in homelessness since the
foreclosure crisis began.39
o Approximately 40% of families facing eviction due to foreclosure are renters; the problem
may continue to worsen as renters represent a rising segment of the U.S. population.40
For women in particular, domestic violence is a leading cause of homelessness.41
According to the most recent annual survey by the U.S. Conference of Mayors, major cities across
the country report that top causes of homelessness among families were: (1) lack of affordable
housing, (2) unemployment, (3) poverty, and (4) low wages, in that order.42 The same report found
that the top four causes of homelessness among unaccompanied individuals were (1) lack of
affordable housing, (2) unemployment, (3) poverty, (4) mental illness and the lack of needed
services, and (5) substance abuse and the lack of needed services.43