Ending Homelessness Makes Economic Sense

Building low-cost housing is significantly cheaper than supporting chronically homeless people living on the streets.

Case-in-point: Denver. Just four year into their 10-Year Plan to End Homelessness, the city of Denver is experiencing significant success and noteworthy savings. The number of chronically homeless people on the streets is down, and panhandling, detox visits, and prison intakes have also significantly dropped.

Denver's success in just four years proves that the ripple effects of a coordinated effort to combat homelessness can be far-reaching. Thus, beyond the social-justice, "housing as a human right" argument for ending homelessness, it should be a priority from a cost-benefit perspective, too.

Here's a clip from the Denver Post:

Even if the deep recession boosts the homeless-snapshot census due next month, officials said, they can now prove to doubters that building a housing unit is cheaper for taxpayers than a life on the street.

"The most important thing we've learned, is A: It's possible to succeed at this; and B: To do so makes economic sense," said Hickenlooper, summing up the first four years of Denver's Road Home.

"These programs are, in fact, cost beneficial," said Dennis Culhane, a social policy professor at the University of Pennsylvania who has studied programs across the nation, including Denver's.

Detox admissions for homeless substance abusers fall 84 percent when they are targeted for housing and services, said Jamie Van Leeuwen, a Denver Department of Human Services official who is manager of Denver's Road Home. Those homeless were each averaging 70 detox admissions a year, which means the savings are substantial. Jail intakes of Denver homeless, meanwhile, are down 22 percent over the past two years.

(Here's more information about Housing First and community-based, 10-year initiatives to end homelessness.)

Of course, the early success of Denver's efforts do not mean that the work is over. In fact, city officials have adopted a new motto: BUILD MORE. Indeed, they believe the the combination of bricks-and-mortar projects and comprehensive and targeted social services (such as job training and case management) must be emphasized moving forward.

[Photo from the Denver Post: "Larry "Joe" Robinson packs for his move into the Aromor building next week. Formerly homeless, Robinson will be training for an office job this fall while living in a dorm-style room."]