Why Prevention is More Affordable Than Crisis Response
Homelessness is often viewed as a humanitarian issue, but it is also an economic one. The financial burden of responding to homelessness—through emergency shelters, medical care, and law enforcement—is far greater than the cost of prevention programs that keep families housed. By investing in preventative measures, we can save money and create better long-term outcomes for families in crisis.
The High Costs of Homelessness
Homelessness places a significant financial burden on communities. According to the National Alliance to End Homelessness, the average cost of emergency shelter per person is **$12,800 annually** (NAEH, 2023). This figure does not include indirect costs, such as healthcare, social services, and lost productivity.
The Financial Strain on Public Services
- Healthcare Expenses: Individuals experiencing homelessness are more likely to rely on emergency rooms for medical care, leading to skyrocketing costs. The American Journal of Public Health found that unhoused individuals incur annual healthcare costs that are four times higher than housed individuals (AJPH, 2022). Chronic illnesses such as diabetes, heart disease, and respiratory infections are more prevalent among those experiencing homelessness due to inadequate access to consistent healthcare. Preventable conditions escalate into emergency situations, driving up expenses for hospitals and taxpayers alike.
- Law Enforcement Cost: Cities spend millions annually policing homelessness. Studies show that criminalizing homelessness—such as ticketing or jailing individuals for sleeping in public—costs taxpayers three times more than providing housing and supportive services (Harvard Law Review, 2023). Many communities allocate significant portions of their law enforcement budget to managing homelessness, despite evidence that punitive measures do not reduce the number of people without housing. Arrests, court proceedings, and incarceration further strain local governments and often make it harder for individuals to secure stable housing in the future.
- Lost Economic Productivity: Families experiencing homelessness often face employment instability, resulting in lost wages and higher dependency on social services. Research indicates that every $1 spent on eviction prevention saves $4 to $5 in costs related to homelessness (Urban Institute, 2023). When a family loses housing, parents may struggle to maintain employment due to unreliable transportation, lack of childcare, or physical and mental health issues that arise from their unstable living situation. The economic ripple effect of homelessness extends beyond the individual family, affecting businesses, local economies, and government assistance programs.
Why Prevention is More Cost-Effective
Investing in homelessness prevention programs reduces long-term costs and improves outcomes for families. Family Promise of Cobb County, for example, focuses on keeping families housed through eviction prevention, resourse management, and transitional housing programs. These solutions are significantly more affordable and effective than crisis response efforts.
Cost Savings in Prevention Strategies
- Rapid Rehousing: Studies show that rapid rehousing programs cost 50% less than emergency shelter stays (HUD, 2023). These programs provide short-term rental assistance and supportive services to help families regain stability quickly. By moving individuals and families directly into housing and offering temporary financial support, communities avoid prolonged emergency shelter stays that can be both costly and destabilizing.
- Eviction Prevention: Preventing an eviction through financial assistance costs an average of $2,500 per household, while providing emergency shelter for the same family for just one month can cost up to $5,000 (National Low Income Housing Coalition, 2023). Eviction prevention programs offer critical financial assistance at a fraction of the cost of rehousing families after they have already lost their homes.
- Transitional Housing Programs: Family Promise of Cobb County’s model of providing temporary shelter and case management costs significantly less than traditional emergency shelters while yielding higher long-term success rates. Families in these programs receive the support they need to secure stable housing, employment, and financial independence, reducing their chances of experiencing homelessness again in the future.
Case Study: The Impact of Prevention Programs
A study by the University of Pennsylvania found that permanent supportive housing programs reduced public service costs by $16,282 per person annually (UPenn, 2022). When individuals and families receive stable housing and supportive services, they rely less on emergency healthcare, law enforcement, and other costly interventions.
In another example, a citywide initiative in Salt Lake City, Utah, reduced chronic homelessness by 91% through its Housing First program, which provides immediate housing assistance without preconditions. This approach saved taxpayers millions of dollars by reducing shelter use, hospital visits, and law enforcement interactions (Utah Department of Workforce Services, 2023).
The Social and Economic Benefits of Prevention
Beyond financial savings, investing in homelessness prevention leads to numerous societal benefits:
Better Educational Outcomes for Children
Homelessness disrupts schooling, causing long-term academic setbacks. Children experiencing homelessness are more likely to miss school, struggle with concentration, and suffer from emotional and behavioral challenges. Stable housing leads to improved attendance and performance. According to the National Center for Homeless Education, students experiencing homelessness are 87% more likely to drop out of school than their housed peers (NCHE, 2023). By keeping families housed, we ensure that children have a stable environment to learn and succeed.
Healthier Families and Communities
Families in stable housing have better access to healthcare and experience fewer hospital visits, reducing overall medical costs. Housing instability contributes to stress-related illnesses, malnutrition, and mental health disorders. Preventative healthcare services, when combined with stable housing, lead to healthier individuals and reduced demand on emergency medical resources.
Stronger Local Economies
When families remain housed, they contribute to the local economy through employment, consumer spending, and reduced reliance on social services. Homelessness leads to lost productivity, as individuals facing housing instability are more likely to experience job disruptions. Preventing homelessness strengthens workforce participation and economic stability.
How You Can Help
Preventing homelessness requires a community-wide effort. You can make a difference by:
- Donating to eviction prevention funds and transitional housing programs, like Family Promise of Cobb County. Your financial contributions directly support families in need and help them maintain stability.
- Volunteering with Family Promise of Cobb County to support families in crisis. Whether providing meals, mentorship, or advocacy, your time can make a significant impact.
- Advocating for policies that fund affordable housing and rental assistance programs. Contact your federal, state and local Cobb representatives to support initiatives that prioritize housing as a human right.
The Path Forward
Investing in prevention isn’t just the right thing to do—it’s the smart thing to do. By prioritizing proactive solutions over reactive crisis responses, we can save money, strengthen our communities, and ensure that every family has a stable place to call home.
Join the Movement
Want to help us make a lasting impact? Visit www.fpcobb.org to learn more about how you can support Family Promise of Cobb County’s mission.
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