Pitchfork Economics with Nick Hanauer

Homelessness is a Housing Problem (with Gregg Colburn)

Dec 3, 2024
Guest Gregg Colburn, an associate professor of real estate at the University of Washington, dives into the complex causes of homelessness. He debunks the myth that homelessness stems from addiction or mental health issues, emphasizing that skyrocketing housing costs are the real culprit. Colburn advocates for a comprehensive approach to tackle this crisis, highlighting the need for affordable housing and rental assistance. He argues for substantial investments in housing as essential infrastructure, presenting a data-driven strategy to address America’s homelessness issue.
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INSIGHT

Homelessness: A Housing Problem

  • Homelessness is primarily caused by high housing costs and low vacancy rates, not individual factors like addiction or mental illness.
  • Cities with the highest poverty rates often have lower homelessness rates than wealthier cities, challenging common misconceptions.
INSIGHT

Rent and Vacancy Rates

  • Absolute rent and rental market vacancy rates are the strongest indicators of homelessness rates in a community.
  • High rents and low vacancy rates create a causal link driving homelessness.
INSIGHT

Absolute vs. Relative Rent

  • Absolute rent matters more than the percentage of income spent on rent (housing cost burden).
  • Housing markets adjust to prevailing wages, so cost burden variation isn't as significant as absolute rent differences.
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