Is the Affordable Housing Crisis Propelling a Third Mass Homelessness Era?
Confronting the Illusion of 'Affordable Housing' Amidst the Escalating Homelessness Crisis
There have been two mass homelessness eras in the United States of America. The first occurred during the Great Depression, from the late 1920s to the early 1940s. This era placed numerous individuals and families in a cycle where access to housing was scarce.
During this period, two presidents played significant roles relevant to the subsequent discussion about a potential emergence of a third mass homelessness era in the U.S.
The first president, Herbert Hoover (1929-1933), was in office during the initial years of the Great Depression. During Hoover’s administration, homeless encampments known as Hoovervilles emerged in the U.S.
According to Herring (2015),
“…as the Great Depression deepened, throughout the ’30s, the seasonal jungles of transient workers became entrenched shantytowns of the chronically unemployed, widely known as Hoovervilles, after President Herbert Hoover, whom many blamed for the financial crash” (para. 5).
This period also witnessed the first public protests by tens of thousands unhoused, who were jobless World War I veterans who formed the “Bonus Army,” highlighting the lack of housing accessibility and challenging the U.S. government.1
The second president, Franklin D. Roosevelt (1933-1945), served as president for most of the era and implemented effective social welfare programs as part of the New Deal to address the crisis.
However, it is essential to note that many Black and Brown communities often faced barriers to accessing these programs because this policy was implemented during segregation, exclusionary practices toward housing due to redlining, and discrimination toward Black people seeking employment. Furthermore, later administrations, such as that of Ronald Reagan, made cuts to the New Deal, leading to the onset of the second mass homelessness era.2
The second mass homelessness era is considered to have begun in the late 1970s or early 1980s and continues to the present day. This era created contemporary homelessness, including the criminalization of homelessness.
I note this to explain the connections between these historical periods and the potential for a third mass homelessness era. According to Without Housing (2010), the contemporary era is known to have started during the Reagan administration3:
Ronald Reagan (1981-1989) significantly impacted homelessness through policy shifts that reduced funding for affordable housing and social welfare programs.
This information is critical to support the argument I will make in the following paragraphs explaining why, in my scholarly opinion, we are heading into a third mass homelessness era and why affordable housing is an illusion.
It is important to acknowledge that homelessness is a complex issue influenced by various factors and the actions of individuals holding political power. These factors include but are not limited to, local and state governments, economic conditions, social policies, and systemic factors. However, it is essential to note the distinct differences between the two mass homelessness eras mentioned above.
Great Depression era: The Great Depression was a severe economic downturn that began with the stock market crash of 1929 and lasted throughout the 1930s. It resulted in widespread unemployment, poverty, and a collapse of the housing market.
Contemporary era: The contemporary era of mass homelessness emerged and has embedded long-term structural factors, such as income inequality, rising housing costs, mental health challenges, substance abuse, and a decrease in the availability of affordable housing, which characterize it.
While these factors are distinct, I believe that the effects of the combination of the two eras, coupled with the lack of access to affordable housing during the contemporary housing crisis, are ushering in a third era of mass homelessness. This era, in my opinion, affects individuals who have never experienced homelessness before in their lives.
This is not chronically unhoused but those who are near homelessness.
The third mass homelessness era primarily impacts individuals who can no longer afford housing due to rising costs. It also affects everyday people who work jobs that are considered career jobs but have not seen corresponding wage increases. This holds true for those who are deemed minimum-wage workers as well.
If I were to coin a term to describe this era, I would label it the “Era of Mass Homelessness and Unaffordability.”
The article titled “Full-time minimum wage workers can’t afford rent anywhere in the U.S.” by Alicia Adamczyk (2021) demonstrates that the affordable housing crisis poses a significant threat to people experiencing poverty. The article highlights the struggles faced by full-time workers earning the minimum wage, who find it challenging to afford rent in any part of the country. This dire situation forces individuals and families with limited incomes to allocate a substantial portion of their earnings toward housing expenses.4
Consequently, they have little to no disposable income to meet other essential needs such as food, healthcare, and education. The perpetuation of the affordable housing crisis reinforces a cycle of poverty, making it exceedingly difficult for those in poverty to escape economic hardships and enhance their quality of life. The lack of affordable housing contributes to the emergence of a mass homelessness era due to several interconnected factors:
When housing costs exceed what people can afford, it creates a significant barrier to finding and maintaining stable housing.
As housing prices increase faster than incomes, individuals and families with limited financial resources may be unable to secure affordable housing options. This can increase the risk of homelessness, especially for low-income people.
Limited affordable housing options mean that individuals and families are more likely to face challenges in finding suitable and affordable housing within their means, pushing them closer to the brink of homelessness.
As income inequality grows, more of the population may struggle to secure housing, increasing the risk of homelessness.
As neighborhoods undergo gentrification, property values rise, and the cost of living increases. This can force long-time residents, particularly those with lower incomes, out of their homes and into unstable housing situations or homelessness.
Combining these factors creates a precarious situation for individuals and families, increasing their vulnerability to homelessness. The risk of an “Era of Mass Homelessness and Unaffordability” intensifies without adequate housing options and supportive policies to address the affordability crisis.
One reason affordable housing is an illusion is the widening gap between housing costs and stagnant incomes. While housing prices continue to rise, incomes for many individuals and families have not kept pace. This mismatch between wages and housing costs leaves many struggling to find housing options that fit within their means. As a result, a significant portion of the population faces the harsh reality of being priced out of the housing market, unable to secure a safe and stable place to call home.
It is crucial to focus on preventing the further spread of homelessness, primarily fueled by the lack of access to affordable housing. We must hold politicians accountable for employing the language of affordable housing as a persuasive campaign tactic while taking no effective action to address the escalating threat faced by those at risk of experiencing the third mass homelessness era.
This failure to address the actual housing needs of individuals, coupled with the growing number of people affected by the illusion of affordability, contributes to the ongoing rise in homelessness figures.
By addressing the root causes of homelessness and challenging the deceptive notion of affordable housing, we can proactively take steps to prevent homelessness, protect the inherent dignity of individuals, and cultivate stronger, more resilient communities.
It is imperative to hold those in positions of power accountable for their actions and policies, ensuring meaningful progress in addressing the underlying issues and providing accessible housing solutions for all individuals and families in need.
If you want to explore homelessness in the U.S., please consider checking out the book“I See You: How Love Opens Our Eyes to Invisible People.”
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According to Herring (2015), “In 1932, tens of thousands of jobless World War I veterans formed the “Bonus Army” and marched to Washington to demand advances on promised bonuses for their military service” (para. 5).
Herring, C. (2015, December 1). Tent city, America. Places. https://placesjournal.org/article/tent-city-america/?cn-reloaded=1
Western Regional Advocacy Project. (2010). Without Housing: Decades of federal housing cutbacks, massive homelessness and policy failures. Update Report
Adamczyk, A. (2021, July 14). Full-time minimum wage workers can’t afford rent anywhere in the U.S. CNBC. Retrieved from https://www.cnbc.com/2021/07/14/full-time-minimum-wage-workers-cant-afford-rent-anywhere-in-the-us.html
In 2020, St Paul, MN passed a bill to cap rent increases at 3% annually, with some additional stipulations (like giving adequate notice so families can find new housing before rent increases). There was a huge misinformation campaign led by wealthy national development corporations calling the bill "rent control," which is a different thing. Once the bill passed, most of the new housing construction came to a halt as development companies divested from the Twin Cities.
It felt like a whole commentary on what is driving this crisis, even when politicians deliver on their end.