Financial strain predicts future risk of homelessness and partly explains the effect of mental illness

https://www.eurekalert.org/pub_releases/2021-03/wkh-fsp031221.php

 

News Release 12-Mar-2021
Wolters Kluwer Health

 

Financial strains like debt or unemployment are significant risk factors for becoming homeless, and even help to explain increased risk of homelessness associated with severe mental illness, reports a study in a supplement to the April issue of Medical Care. The journal is published in the Lippincott portfolio by Wolters Kluwer.


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All types of financial strain analyzed - financial crises and debt, lower income, and unemployment - were associated with an increased risk of future homelessness. As expected, severe mental illness - psychotic, bipolar, or depressive disorder - was directly related to an increased risk of homelessness.

In addition, there was a significant "mediating effect" of financial strain, which explained 39 percent of the link between homelessness and mental illness. Homelessness risk was lowest for participants with none of the four types of financial strain, whether or not they had severe mental illness.

"Conversely, participants with all four financial strain variables had significantly higher risk of homelessness," Dr. Elbogen and coauthors write. The risk of becoming homeless increased with each additional type of financial strain, independent of mental illness.

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The finding that financial strain accounts for part of the impact of severe mental illness "suggests that addressing mental illness without consideration of financial strain may not lead to optimal reduction in homelessness risk," Dr. Elbogen and colleagues add. The study supports efforts to help homeless individuals grow financially through employment, increased financial knowledge, and money management skills - as offered in effective interventions such as Housing First and VA homeless programs.

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