Wednesday, January 9, 2008

Homelessness and Low-Income Housing

Yesterday I was generously lent an Urban Economics text book by Prof. Malcolm Getz of the Economics department here at Vanderbilt. I found this interesting tidbit about how the availability of low-income rental housing is directly related to the rate of homelessness:

"a 10% increase in rent on low-quality housing increases the homeless rate by 12.5%." (O'Sullivan, 2003, pg 461)

Basically, as the cost of low-income housing goes up, the homelessness population increases at an even faster rate.

Framed another way, this suggests that if we could lower the cost of Nashville's low-income housing by 10% we could reduce homelessness by 12.5%.