A city increasingly composed of median-income renters widens the gap between rich and poor. As new members of the middle class are pushed into rental units, they boost the fortunes of existing property owners while depleting their own, whether their landlords are the people living upstairs, offshore condo investors, or funds like Great-West Life. And this is where things start to topple. When prices heat up, the middle class eats up units that would previously have been occupied by moderate- to low-income earners. “Moderate-income people in Vancouver are moving into student housing,” says councillor Heather Deal. “Students are moving into welfare apartments in the Downtown Eastside. And the homeless are popping out the bottom of the system.”posted by mannequito at 1:48 PM on October 24, 2011 [7 favorites]
It is generally believed that the increased incidence of homelessness in the US has arisen from broad societal factors – changes in the institutionalization of the mentally ill, increases in drug addiction and alcohol usage, etc. This paper reports on a comprehensive test of the alternate hypothesis that variations in homelessness arise from changed circumstances in the housing market and in the income distribution. We utilize essentially all the systematic information available on homelessness in US urban areas – census counts, shelter bed counts, records of transfer payments, and administrative agency estimates. We use these data to estimate the effects of housing prices, vacancies, and rent-to-income ratios upon the incidence of homelessness. Our results suggest that simple economic principles governing the availability and pricing of housing and the growth in demand for the lowest quality housing explain a large portion of the variation in homelessness among US metropolitan housing markets. Furthermore, rather modest improvements in the affordability of rental housing or its availability can substantially reduce the incidence of homelessness in the US.posted by russilwvong at 1:57 PM on October 24, 2011 [4 favorites]
« Older In anticipation of the upcoming 20th anniversary r... | Pakistan's pro-Taliban Jamiat ... Newer »
This thread has been archived and is closed to new comments
posted by George_Spiggott at 12:45 PM on October 24, 2011 [10 favorites]