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How income inequality and homelessness are related

Income inequality has been increasing for decades in the United States, and two years removed from the start of the COVID-19 pandemic, we’re likely to only see this get worse. 

A report from Boston University School of Social Work Assistant Prof. Dr. Thomas Byrne analyzed the link between income inequality and rising rates of homelessness. 

The study looked at income inequality, homelessness, rental cost burden and home value in 239 communities across the United States from 2007 to 2018 and found that increases in local income inequality appeared to be “an important driver of increases of homelessness.” 

Byrne’s study said during that 11-year timeframe, a city with “roughly 740,000 residents” saw an increase in the city’s income inequality that led to an additional 200 people who are now living on the streets. 

Annual “point-in-time” (PIT) estimates of the size of the homeless population have been available since 2007, and according to the data, in recent years the homeless population has actually dropped.

But this hasn’t been true for all communities, Byrne says. Some of them have seen substantial rises in the number of people experiencing homelessness over this time period. 

Why is that? Differences in income inequality are one possible reason. 

At the local level, homelessness rates are related to income inequality. 

In the city of Atlanta, on any given night, more than 1,996 people are facing homelessness. According to the 2020 U.S. Census, 20.8% of Atlantans live at or below the poverty level compared to the U.S. average of 11.4%

The impact of the COVID-19 pandemic on homelessness hasn’t been accurately captured, and many of the current nationwide estimates of homelessness were released in 2020 prior to COVID-19 being declared a health emergency.

Evictions in Georgia are starting to increase as the state lags behind in the disbursement of rental assistance, according to a previous article by Atlanta Journal-Constitution. Evictions in Atlanta averaging 10,000 per month since the moratorium ended. 

In order to address these concerns and address income inequality in Atlanta, we have to use what is at our disposal to make the greatest impact. Our hope-giving model helps us identify the needs of our clients to provide services to help them overcome the cause of their homelessness. 

We know that addressing homelessness and income inequality at the state and local levels requires a lot of work, and there is hard work ahead of us. 

But, we have hope. We have hope in this community that continues to give, impact and help transform lives. 

Last year, we helped 1,088 men, women, and children, and 244 clients end their experience with homelessness! 

Together, we are helping clients build a brand-new future and find hope and we continue to do so each and every day.