What are the top 10 causes of homelessness in America?

Introduction

Homelessness is one of the most pressing and visible social issues in the United States. On any given night, over 650,000 people are experiencing homelessness in America, according to recent reports from the U.S. Department of Housing and Urban Development (HUD). They live in shelters, in cars, on sidewalks, under bridges, or in makeshift encampments. Contrary to stereotypes, the causes of homelessness are complex, often overlapping, and deeply rooted in systemic inequality.

This article explores the top 10 causes of homelessness in the United States, offering insight into the structural, economic, and personal factors that drive people out of their homes and into crisis.

1. Lack of Affordable Housing

The most significant and widespread driver of homelessness is the national shortage of affordable housing. In nearly every major U.S. city, housing prices have surged far beyond what average workers can afford. According to the National Low Income Housing Coalition:

• There is a shortage of over 7 million affordable rental units for extremely low-income renters.
• In most cities, a full-time minimum wage worker cannot afford a one-bedroom apartment at fair market rent without spending more than 30% of their income.

Rising real estate prices, gentrification, and limited development of low-income housing options have led to a crisis in availability. As housing becomes more scarce and expensive, many families are forced to spend half or more of their income on rent, leaving them one unexpected expense away from homelessness.

2. Poverty and Income Inequality

Poverty is a foundational cause of homelessness. When people don’t earn enough to cover their basic living expenses—rent, food, healthcare, transportation—they are at high risk of losing stable housing.

While the national unemployment rate remains low, many Americans are underemployed or working in low-wage jobs with no benefits. Wages have not kept up with the cost of living:

• 40% of Americans do not have $400 in savings for an emergency.
• Income inequality continues to rise, with the top 1% of earners holding more wealth than the bottom 90% combined.

Those at the bottom of the economic ladder—especially single parents, people with disabilities, and elderly individuals on fixed incomes—are most at risk of slipping into homelessness.

3. Evictions and Foreclosures

Housing loss due to evictions or foreclosures is a direct and often traumatic path into homelessness. Millions of Americans are evicted each year, frequently for being just a few days late on rent. The COVID-19 pandemic and its aftermath only worsened this trend:

• As emergency rental assistance programs ended, eviction filings surged, especially in major metro areas.
• Eviction disproportionately affects Black renters, single mothers, and low-income families.

Once evicted, finding new housing becomes even harder. Landlords often refuse to rent to someone with an eviction record, and moving expenses are often out of reach. Similarly, foreclosure can push homeowners—especially seniors—into homelessness, particularly if they have no rental history or family support.

4. Mental Illness and Lack of Access to Healthcare

A significant portion of the homeless population lives with serious mental illness, including schizophrenia, bipolar disorder, and severe depression. While mental illness itself does not directly cause homelessness, it contributes in critical ways:

• It may impair an individual’s ability to hold a job, manage finances, or comply with housing rules.
• Mental illness is often untreated due to lack of access to affordable healthcare or psychiatric care.
• Incarceration, institutionalization, and discharge without support lead to cycles of homelessness.

Instead of receiving consistent, community-based mental health treatment, many individuals bounce between emergency rooms, jails, shelters, and the streets—none of which are equipped to provide long-term care.

5. Substance Use and Addiction

Like mental illness, substance use disorders are both a cause and consequence of homelessness. Addiction can lead to job loss, family breakdown, and legal issues, all of which increase housing instability.

Common issues include:

• Alcohol dependency
• Opioid and fentanyl abuse
• Methamphetamine use, especially in the western U.S.

Substance use is often a coping mechanism for the trauma and stress of homelessness, but it also makes recovery and reintegration more difficult. Unfortunately, substance abuse treatment programs are underfunded and often inaccessible to those in need.

6. Domestic Violence and Family Breakdown

Domestic violence is one of the leading causes of homelessness among women and children in America. Survivors are often forced to flee their homes suddenly, with few resources or support networks.

Key facts:

• 1 in 4 women in the U.S. has experienced severe intimate partner violence.
• Shelters for abuse survivors are often full, with long waitlists and limited capacity.
• LGBTQ+ youth are also at high risk, particularly those rejected by family members.

Many survivors face a choice between staying in an abusive home or becoming homeless—an impossible decision no one should have to make.

7. Unemployment and Underemployment

While headline unemployment numbers may appear low, they don’t reflect the full economic picture. Many people are:

• Working part-time or gig jobs with no benefits or job security.
• Experiencing seasonal or temporary layoffs.
• Unable to work due to disability, age, or caregiving responsibilities.

Job loss, especially without unemployment insurance or savings, can quickly lead to eviction and homelessness. Older adults who lose jobs often find it difficult to re-enter the workforce, while younger workers face competition and automation in entry-level roles.

8. Discharge from Institutions Without Support

Many individuals become homeless immediately after being discharged from prisons, psychiatric hospitals, foster care, or military service. Without housing placement services, many fall through the cracks.

• Former inmates face housing discrimination, parole restrictions, and limited job opportunities.
• Foster youth, upon aging out of the system at 18 or 21, often have no permanent home or support network.
• Veterans, especially those with PTSD, often struggle to transition to civilian life, leading to increased rates of homelessness.

Without robust re-entry programs and transitional housing, these populations are at severe risk of becoming chronically homeless.

9. Systemic Racism and Discrimination

People of color—especially Black, Indigenous, and Latino populations—are vastly overrepresented among the homeless. Systemic racism manifests in:

• Discriminatory housing policies (past and present)
• Wage disparities
• Redlining, gentrification, and environmental racism
• Criminal justice policies that disproportionately incarcerate people of color

For instance, Black Americans represent just 13% of the U.S. population but account for over 40% of those experiencing homelessness. These disparities are not accidental; they are the result of decades of exclusion from housing wealth and economic opportunity.

10. Natural Disasters and Climate Change

As climate change accelerates, climate-driven displacement is becoming a new driver of homelessness. Natural disasters such as:

• Wildfires in California
• Hurricanes in the Southeast
• Flooding in the Midwest
• Extreme heat waves

…have destroyed homes and left residents with nowhere to go.

Disasters disproportionately affect low-income communities, which are less likely to be insured, more likely to live in vulnerable areas, and have fewer resources for recovery. In the aftermath of a disaster, many renters and even homeowners are displaced and unable to find new housing, especially in already tight housing markets.

Intersecting Causes and Cycles

While each of these ten causes is significant, homelessness is rarely the result of one single factor. Instead, it is usually the result of a combination of pressures:

• A person may lose a job (unemployment) while also battling a chronic illness (healthcare costs), eventually leading to eviction.
• A single mother fleeing abuse (domestic violence) may face discrimination and low wages (poverty), preventing her from securing stable housing.
• A disabled veteran with PTSD (mental illness) may be discharged from a hospital or prison (institutional exit) without support.

Each of these factors amplifies the others, creating cycles of homelessness that are difficult to escape without intervention.

Solutions: What Can Be Done?

Solving homelessness requires addressing these root causes with comprehensive, humane, and sustained solutions. Some policy strategies include:

1. Affordable Housing Development

• Build and preserve low-income rental units
• Incentivize inclusive zoning and public housing

2. Eviction Prevention and Tenant Protections

• Legal aid for tenants
• Emergency rental assistance programs

3. Living Wages and Economic Security

• Raise the minimum wage
• Expand access to job training and benefits

4. Healthcare and Mental Health Access

• Universal healthcare or expanded Medicaid
• Community-based mental health care

5. Trauma-Informed Shelter Systems

• Design shelters with safety and dignity
• Provide wraparound services (mental health, addiction, employment)

6. Support for Vulnerable Populations

• Transitional housing for youth, veterans, and former inmates
• Domestic violence-specific shelters and legal aid

Addressing homelessness means rethinking how we value housing—not just as an investment, but as a human right.

Conclusion

Homelessness in America is not a personal failing—it is a policy failure. From housing affordability to systemic racism, from untreated mental illness to economic insecurity, the causes of homelessness are deeply rooted and interconnected. Any serious attempt to end homelessness must address these root causes, not just treat the symptoms.

We must shift from short-term band-aid solutions to long-term structural reform. Until we build a society where everyone has access to safe, affordable housing and the resources needed to maintain it, homelessness will remain a painful symbol of inequality in one of the richest nations in the world.