New Research Links Income Inequality with Increased Cost Burdens and Homelessness
A new study published in The Annals of the American Academy of Political and Social Science found that income inequality drives hundreds of people into homelessness on any given night in dozens of communities across the U.S. The communities examined in the dataset had an average population of 740,000 and in those where there has been a significant increase in income disparities, over 550 additional people are expected to experience homelessness per night. Researchers suggest that this study is among the first to specifically analyze the role that income disparities play in driving homelessness in communities. As part of the analysis, the researchers examined the impact of housing-cost burden and the rising prices of housing on homelessness. Their findings suggest that the housing supply is currently unable to keep up with the demand, which can drive housing prices up and cause low-income individuals to become unduly housing-cost burdened. In addition, those communities with fast-growing economies attract higher income workers that also drive up the housing costs, making the cost of living out of reach for lower-income people.