In towns and cities across North America, individuals living in homelessness interact with more than just the local emergency shelters. They also interact with healthcare service providers, the justice system, and social services. It can be difficult to keep track of what services are most commonly used, and what the costs associated with services for people who are homeless might be. Accordingly, cost studies of homelessness are a tool of critical importance if we want to learn more about the cost of homelessness. Recently, the largest and most comprehensive cost study of homelessness in the USA was completed in Santa Clara County, California. Santa Clara is home to both the “extreme wealth of Silicon Valley and the highest percentage of homelessness in the USA.” This week’s infographic, produced by Destination: Home program of The Health Trust, takes a look at some important findings from a report published on the six-year study.
Together, the costs per year of providing services for homeless residents in the county amounted to $520 million a year. Over a third of the study’s participants were involved with the criminal justice system; common charges included felonies, infractions, misdemeanors and drug offences. Over half of all costs associated with the county’s services for those experiencing homelessness came from healthcare. Healthcare services used most often were outpatient healthcare, emergency room services and mental health services.
The report and the infographic establish that the costs of homelessness in the country were heavily skewed towards a small number of frequent service users. Homeless residents with costs in the top 10% had average costs of $67,199 per year, accounting for 61% of all costs. (For comparison, the average cost per county resident experiencing homelessness was a little over $5,000.) All individuals belonging to this top decile, who were housed through a permanent supportive housing initiative, had post-housing costs of just $19,767. This amounts to savings of over 70% when we compare the cost of pre-housing with post-housing!
Canadian Application
Geography plays an important role for municipalities in determining the cost of homelessness. Resources, political willpower, local infrastructure all play into experiences of individuals struggling to find housing. Accordingly, the cost-savings in Santa Clara County may not be congruent with other communities in the USA and Canada that opt for a similar approach. It should be noted, however, that recent research suggests that the cost associated with homelessness remains high in Canada: an estimated $7 billion annually.
The study does contribute to a large body of research that identifies homeless prevention and permanent supportive housing as two cost-efficient approaches we have at our disposal in the fight against homelessness. This body of research includes several studies focused on homelessness prevention that were completed in Canada. Providing individuals living in homelessness with permanent housing and wrap-around supports is sustainable and leads to improved short-term and long-term outcomes.