Why Are People Homeless?
There are many complex causes of homelessness. At a basic level, people become homeless when their wages and income are not enough to cover rent or a mortgage and other necessities like food, medicine, health care, transportation, and child care.
Circumstances and life-altering events that cause a person to become homeless include:
- Low-paying jobs
- Lay-offs
- Serious illness or accidents
- Lack of income
- Loss of a loved one or divorce
- Lack of support networks
- Evictions
- Foreclosures
- Poverty
- Natural disasters (e.g., hurricanes, floods)
- Fires
Economic forces, policy decisions, budget priorities, societal trends, and public attitudes about assistance programs also play a significant role. For example, during the Great Recession—the worst global recession since the Great Depression—high rates of unemployment and foreclosures forced many people from their homes.
The Impact of COVID-19
The COVID-19 pandemic had lasting effects on homelessness. Many people lost their jobs due to illness or because they needed to care for sick family members. When federal pandemic relief funding ended, rising inflation and a lack of affordable housing pushed even more people into homelessness.
In addition, families were displaced by natural disasters and climate migration, further increasing housing instability. For more information, visit our Coronavirus and Homelessness resource page.
Housing Affordability in the U.S.
According to the National Low Income Housing Coalition (NLIHC):
- There is no state in the U.S. where a person earning federal minimum wage ($7.25/hour) can afford a two-bedroom apartment at Fair Market Rent (FMR).
- In 2024, a full-time worker must earn $26.74 per hour to afford a modest one-bedroom rental home—more than 3.5 times the federal minimum wage.
- Only North Dakota has a rental wage close to what’s needed to afford a two-bedroom at FMR, based on the average renter’s wage.
NLIHC research highlights a national shortage of more than 7 million affordable and available rental homes for extremely low-income renters—those earning at or below the poverty line or 30% of their area median income.
Most renters in this group are:
- Seniors
- People with disabilities
- Working individuals
- People enrolled in school
- Caregivers of young children or disabled family members
Updated 2024 data shows:
- There are only 35 affordable rental homes available for every 100 extremely low-income households.
- 75% of these households are severely cost-burdened, spending more than half of their income on housing.
How Long Do People Remain Homeless?
The length of time someone remains homeless varies widely depending on personal circumstances, available services, and broader economic factors. Some people experience homelessness for a short time, while others cycle in and out of homelessness over many years.
According to the U.S. Department of Housing and Urban Development (HUD) in 2023:
- All types of homelessness increased, with the largest rise among children under 18
- 60% of people experiencing homelessness were men or boys
- 1 in 3 homeless individuals had been homeless for a year or longer, or repeatedly over time
HUD defines chronic homelessness as being unhoused for at least a year or repeatedly while living with a disabling condition, such as:
- A physical disability
- Serious mental illness
- A substance use disorder
These conditions make it difficult to secure and maintain housing. According to the 2024 Annual Homeless Assessment Report, chronic homelessness has increased by 38% since 2020, just before the pandemic began.
Additional Challenges Contributing to Homelessness
Many people experiencing homelessness face additional barriers that make it difficult to find and maintain stability, including:
- Physical and mental health challenges
- Disabilities
- Addiction and alcoholism
- Domestic violence
- Trauma and post-traumatic stress disorder (PTSD)
These challenges are often made worse by the lack of:
- Affordable physical and mental health care
- Access to education or job training
- Supportive services tailored to individual needs
Race and racism are also directly connected to homelessness. Black, Native American, and other people of color are disproportionately represented among people experiencing homelessness, in large part due to systemic inequalities in housing, employment, health care, and the justice system.
Read more about solutions to homelessness and how to help homeless people.
