Causes of intercity variation in homelessness

Estimates by the US Department of Housing and Urban Development (HUD) of the homeless population in a cross-section of metropolitan areas in 1984 are used to assess the relative importance of factors influencing homelessness. The key finding is that, despite the perceived weakness of HUD data and the large variation in the incidence of homelessness and other poor housing outcomes across metropolitan areas, a relatively parsimonious and intuitively appealing set of factors is able to explain variations in homelessness, crowding, and doubling-up across US cities. The findings indicate that homelessness has multiple causes. It has roots in housing markets, labor markets, and public policies regarding the treatment of the mentally ill and the low-income population. The results also show that the percentage of births to teenage mothers substantially increases the incidence of doubling-up but, interestingly, appears to be related to lower levels of homelessness.