Homelessness on either side of the Atlantic
The proliferation of tent cities and decrepit RVs in towns and cities across America has led some to see this as a potent symbol of the economic crisis, as affordable housing is out of reach of ever increasing numbers of low income people. Indeed, the US Department of Housing and Urban Development (HUD) reported
On a single night in January 2023, “roughly 653,100 people—or about 20 of every 10,000 people in the United States—were experiencing homelessness,” with about 60% in shelters and the remaining 40% unsheltered, according to HUD. That’s a 12% increase from 2022 and the highest number of unhoused people since reporting began in 2007.
British homelessness
However, as reported in the Weekend Financial Times (May 18, 2024) people sleeping rough on the streets is one of the lesser manifestations of the problem.
The main form of homelessness is people living in temporary accommodation, the main driver is an inability to afford housing, and America is not even particularly close to the worst. The UK holds that ignominious title, with an astonishing one in 200 households living in emergency lodging outside the formal housing sector.
Hundreds of thousands of people across the developed world live in buildings where damp and mold are commonplace, as are insect and animal infestations. The disruption of being moved from place to place causes adults to drop out of work and children out of school.
Britain has the highest rate of homelessness of any country:
These numbers show that while more people sleep on the streets in the States, there is less overall homelessness per 10,000.
The FT highlights the root of the problem in three areas:
This nightmare scenario is due to three main factors: woefully inadequate rates of housebuilding, a dwindling social housing sector and the erosion of financial support for those unable to afford market rents. Relative to population size, the UK builds fewer homes than the vast majority of other developed countries. This has sent private sector rents spiraling, exacerbated by a 25 per cent shrinking of the social housing sector since the 1970s, slowly closing a crucial safety valve.
A lengthy analysis of the rates of housebuilding in Britain since the end of the First World War to today, concludes that a combination of NIMBYism, the “iron ring of green belts around Britain’s cities,” and a failure of political will has led to the current undersupply.
It remains to be seen if an America where land is more plentiful can build accommodation for all.
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