Source: https://commons.wikimedia.org/wiki/File:Homeless_Man.jpg

The level of homelessness across the United States is having a devastating impact in many ways, and this includes having an adverse effect on the economy. A recent report has indicated that there are various reasons behind the detrimental effects on homelessness levels across the United States, including the impact that is being seen in Houston.

Figures were recently released showing that, compared to 2011, homelessness in the city had actually decreased last year. However, the impact on the economy is still very noticeable, which has sparked concern amongst officials. In fact, one housing official has said that it is more cost-effective for the city to house homeless people than to fund the cost of them living on the streets.

How Businesses Are Being Affected

The report indicates that businesses in all sectors are being affected by homelessness levels in the city, from retailers and eateries through to Houston attorneys and medics. Officials state that one of the ways in which businesses are being negatively impacted is through the effects of homelessness on tourism and enterprise.

There are concerns that homelessness levels could put people off from visiting certain parts of Houston, which directly impacts the economy in those specific areas. In addition, homelessness is thought to have an impact on the decision of businesses to set up in a specific area, which also has a negative impact on the economy. However, one official from the non-profit housing organization, New Hope Housing, said that this was just part of the impact that high homelessness levels were having.

He added that the biggest part of the problem was the cost of dealing with homelessness in the area, which can run into tens of thousands of dollars per person. According toSEARCH Homeless Services, it costs an average of $90,000 per year to cover the cost of each homeless person in the state. This includes the cost of emergency rooms, public services, and even prison. The alternative is to provide homeless people in the city with housing, which officials say would cost around $55,000 per year per person. This is almost half the cost of funding them while they are on the street.

Figures show that last year the number of homeless people in the city was around 4,143. This reflected a sharp decrease of close to 50 percent compared to 2011 figures. However, it did also reflect a slight increase in homelessness levels from 2016. It is thought that this is partly down to the devastation that was caused by Hurricane Harvey.

Calculating the Cost of Homelessness

Housing officials are concerned that homelessness is not just having a detrimental effect on the affected individuals but also on businesses in the city and the economy as a whole. Data shows that in 2013, the annual cost of dealing with chronic homelessness was a staggering $103 million. One official said that finding housing for homeless people was not just the right thing to do for the economy and local businesses but also for the individuals concerned.