by John Bossange
It’s no secret that homelessness is driven by poverty and low wages. A lack of affordable housing, transportation, rising food costs, and the absence of health care are additional compounding factors that put people in a permanent state of homelessness. 71,500 (11%) of all Vermonters live in poverty and they cannot afford the high cost housing. This includes Vermonters working multiple jobs making the minimum wage of $13.87 per hour, not just those living in tents or surviving in our streets, parks and public places.
There are other factors that contribute to homelessness, including drug addiction, domestic violence, mental health issues, a lack of affordable daycare, an education or some skills training, and reliable communication. Regardless of the causes, it is much more cost effective to develop affordable, low-income housing and support systems than it is to not take adequate action. To allow homelessness to continue and grow creates an unhealthy and unsafe environment for everyone, and will cost taxpayers much more money down the road.
Permanent supportive and affordable housing is a proven solution to ending chronic homelessness. Providing a home with support services helps people achieve long-term housing stability, improves their mental health, and most importantly over time, decreases homelessness. Permanently supportive housing greatly reduces the use of publicly funded crisis services, including hospitalizations, emergency response teams, and for some, prison.
On average, a chronically homeless person costs the taxpayer about $35,000 per year in temporary support and response services. Those costs are reduced by 50% when they are placed in supportive, low-income housing. Supportive, affordable housing on average costs the taxpayer about $13,000 per year, a net savings of $4,000.
People who complain about their taxes supporting affordable, low-income housing fail to accept the stark financial reality. Either we pay now, or we pay more later. Here in Vermont, people struggling with homelessness are often frequent users of emergency rooms, averaging five visits per year. Each visit costs between $1,480 and $2,097, and those costs can range from $7,450 and $10,485 per year per person. Further, just one night in a hospital costs $9,000. Taxpayers cover those costs in our taxes and insurance premiums.
Those living in poverty also have higher rates of illness like high blood pressure, heart and lung disease, diabetes, and HIV. It is well documented that 80% of emergency room visits by the homeless and those in poverty is for an illness that could have been treated and prevented in a supportive housing environment. Some hospitals are now handing out smart phones to those without health insurance so they can access Telehealth services to proactively receive quality health care and advice, saving taxpayers money by not using emergency room services.
And then there is the unfortunate pathway for some who are arrested for violent acts, shoplifting, and drug trafficking, all too common with the homeless population and those living in poverty who are not housed in supportive facilities. We know the cost of incarceration and the “dead end” for a person who has been placed in prison. At $45,000 per year per inmate, that’s a cost most Vermont taxpayers would want to reduce or eliminate.
Maybe the most tragic result of homelessness and poverty is the impact on children. As a retired middle school principal, I have witnessed the effects of homelessness and poverty on families and their children. These children had higher levels of emotional and behavioral issues which often led to increased risk of serious health problems, as they were more likely to experience separation from their families moving from shelter to shelter.
Too often these students move from school to school several times a year, repeat a grade and, once they enter into adolescence, they tend to be truant and eventually drop out. Without an education or some skills training, these students become unemployed adults, often homeless with drug addictions, living in poverty and can end up with an arrest record leading to incarceration. Those students who were able to persevere and remain in one school usually had a lower academic performance and needed additional tutorial support. Those support services cost taxpayers extra money in increased personnel in a school’s budget.
So yes, there is a high cost associated with low-income, affordable housing. But the cost of all housing is high everywhere as well. Why single out low-income housing? Talk to any realtor working with a family looking to buy a home, or a hard working Vermonter looking to rent an apartment. To simply question the cost of low income and affordable housing as if it is a unique problem is disingenuous. Housing is expensive and there’s a shortage everywhere.
For all Vermonters, having a home is essential to living a full, productive, and stable life. Investing in those who have fallen into poverty and homelessness would pay important dividends to our communities and state. Investing in homes for others with a means to either rent or buy will do the same. We need homes, condos, and rental units, low income and not, especially in our town and village centers, where Vermonters can more easily access municipal services and public transportation.
We need to accept the reality that 71,500 Vermonters live in poverty, with too many now homeless. All Vermonters need a place to call home. Either we pay now or we pay more later.
The author is a retired educator and South Burlington resident.