What Would it Cost?

The Housing First Model addresses homelessness by offering households housing without preconditions such as sobriety, employment, or treatment requirements. Supportive services such as case management, mental health counseling, substance use treatment, and employment assistance are made available in tandem with the housing to support households in stabilizing and working towards self-determined goals. A recently released report co-authored by the National Alliance to End Homelessness (NAEH) and the University of Pennsylvania estimates the cost of providing housing using the Housing First Model to all households experiencing sheltered homelessness in the United States.

This blog provides an overview of the report, highlighting the estimated need and policy considerations for addressing the identified gap.

ABOUT THE REPORT

How Much Would It Cost to Provide Housing First to All Households Staying in Homeless Shelters? utilizes data from the Supportive Services for Veteran Families Annual Report, the Annual Homeless Assessment Report Part 2, and data from the Veterans Affairs Homeless Programs Office to estimate the additional funding needed to house all households that stayed in emergency shelter in 2022. In addition, the report examines housing placement need, housing placement turnover rate, and policy considerations to address Housing First program capacity deficits.

KEY FINDINGS

• The analysis presented in the report estimates that an additional $9.6 billion in funding would be needed to provide Rapid Rehousing (RRH) or Permanent Supportive Housing (PSH) for one year, using the Housing First Model, to all households that stayed in emergency shelter in 2022.
• Critics of the Housing First Model point to consistent, high levels of homelessness as proof that the Housing First Model does not work. The analysis in this report suggests that despite lacking the resources to fully implement the Housing First Model, the number of people who are being housed by homeless services systems are increasing while the number of people utilizing emergency shelter has decreased.
• While the number of people accessing emergency shelter has decreased, the demand remains high in part due to low turnover and length of time to program exit in RRH and PSH programs. While low turnover and longer lengths of time enrolled in RRH and PSH are indicative of housing stability (a goal of Housing First), these factors also impact housing placement availability.
• Assuming people who meet the criteria for chronic homelessness would be placed in PSH and those experiencing temporary or episodic homelessness would be placed in RRH, given the average placement turnover rate, only 16% of households who need a housing placement actually receive one.
• The report authors suggest several strategies to increase and leverage resources to meet the unmet Housing First housing placement need including increasing appropriations for HUD and VA Housing First programs; leveraging Medicaid to create and/or offset the costs associated with Housing First placements; increasing the number of housing vouchers targeted to chronically homeless, single, non-veteran adults; and developing diverse and  innovative approaches to administering rental assistance.