When the Great Recession began in 2008, housing experts expected a rise in homelessness when millions of Americans lost their jobs. To the surprise of many social scientists, estimates for the number of homeless actually dropped to 610,042 in 2013 from 664,414 in 2008. As described in chapter 3 of The Data Game, measuring homeless is tricky. But the numbers, published by the US Department of Housing and Urban Development, don't show a recession-induced bump; instead homelessness declined steadily, if slowly, since 2008.
It may take a while to understand these statistics. The federal government report credits a 2010 program called Opening Doors as a reason for fewer homeless. Similarly, the Bush administration attributed the 2007 homelessness decline to its "housing first" policies. As with the unanticipated decline in the US crime rate (see chapter six), there are likely many factors at work. And, there are anomalies in the data. The federal report indicates that the decline is exclusively in the number of people who do not seek shelter. Those in shelters actually remained nearly constant since 2008, while there has been an increase
in the number of people doubling up with friends and relatives. There are local reports that contradict the rosier national picture. We will need more statistics and careful analysis to fully understand why economic troubles didn't lead to more homelessness.
Hat tip to Tim Taylor for his blog post.