The result is that the cost of housing has risen, but unfortunately the earnings of low income people have not kept pace. While many localities have an adequate supply of housing, this housing is often beyond the economic reach of low income people. In the past, gaps in the supply of affordable housing were filled by either the federal government or the private sector, but their activity is no longer enough to make up the shortfall. One approach to solving the housing side of the equation is to create enough affordable housing to meet the demand. A second way to address homelessness is to ensure that people's incomes are adequate to support stable, independent living.
Work is the chief source of income for homeless people, followed by public benefits.
Yet, not surprisingly, the incomes of homeless people are very, very low. Over the past twenty years, increases in wages and benefits have failed to keep pace with increases in the cost of living. As a result, poor people are spending an increasing percentage of their incomes on housing. There are a variety of ways in which incomes can be increased, including employment training, job development and expanding public benefits. Even if there was a ready and abundant supply of affordable housing and all homeless people had incomes that allowed them to live independently, many people who are homeless would still require assistance to overcome the problems that interfere with their independence.