NUMBER OF HOMELESS FAMILIES CLIMBING DUE TO RECESSION

http://www.cbpp.org/1-8-09hous.htm

January 8, 2008

New data indicate that the number of homeless families with children has climbed in recent months and continues to mount. Although the recovery package that Congress will consider in coming weeks is expected to include measures to restore several million jobs, an unusually large number of people are still likely to fall into severe poverty and to be at risk of homelessness, due to the depth of the recession. As a result, it is important that the package include funding for effective homelessness prevention strategies. Such measures could be included for a cost equal to just one-half of one percent of the cost of the overall package.

Goldman Sachs projects that the unemployment rate will rise to 9 percent by the fourth quarter of 2009 and continue rising into 2010. If unemployment reaches 9 percent and the increase in poverty, relative to the increase in the unemployment rate, is within the range that occurred in the last three recessions, the number of poor Americans will rise by 7.5 – 10.3 million. Moreover, the number of people in “deep poverty” — with incomes below half of the poverty line — will rise by an estimated 4.5 – 6.3 million if unemployment reaches 9 percent. This would represent an increase of about 900,000 – 1.1 million families with children that fall into deep poverty and thus are at risk of housing instability and homelessness.[1]

New figures suggest that hardship and homelessness are already growing:

In July - November 2008, compared with the same period in 2007, the number of families entering New York City homeless shelters jumped by 40 percent.[2]

Massachusetts reports a 32 percent increase between November 2007 and November 2008 in the number of homeless families residing in state-supported emergency shelters.[3]

In Connecticut, family homeless shelters turned away 30 percent more families due to lack of bed space in September 2008 than in September 2007.[4]

Hennepin County, Minnesota (Minneapolis) reports a 20 percent increase between the first 10 months of 2008 and the comparable period in 2007 in the number of homeless families in emergency shelters.[5]

Los Angeles County reports a 12 percent increase between September 2007 and September 2008 in the number of families receiving welfare assistance who are known to be homeless.[6]

Two recent national surveys support these data. In a fall 2008 survey by the U.S. Conference of Mayors, 16 of the 22 cities that provided data on the number of homeless families with children reported an increase in 2008, some of them substantial. (Louisville reported a 58 percent increase.)[7] In another national survey, one in five responding school districts reported having more homeless children in the fall of 2008 than over the course of the entire 2007-2008 school year.[8]