Is Permanent Supportive Housing Cheaper Than Shelters in New York City?

 

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In previous blog posts, we have frequently made reference to the high cost of living in New York City. On average, the monthly cost of living can range from approximately $4,441 for a single person to around $10,033 for a family of four. This makes New York the most expensive city in the U.S. and among the top 0.1 percent of most expensive cities in the world. [1] These statistics no doubt contribute to New York being home to the largest homeless population in the U.S. [2] Nevertheless, this blog post will discuss why it is cheaper to provide the homeless with permanent supportive housing than to pack people into shelters. 

What Is The Cost of Homelessness in New York?

You might not realize it, but there is a society-wide cost to the homelessness crisis. The exact costs will vary depending on the individual, but homelessness can cost taxpayers up to or in excess of $44,700 a year per chronically homeless person. [3] And yes, this number takes into account those living in shelters.

Why Are Shelters So Expensive? 

Though there are definite benefits to shelters, especially given some of the alternatives, they don’t solve the underlying problem and, thus, will not shield you from the ill effects of homelessness. According to data compiled by the National Prevention Science Coalition, a reliance on shelters is more expensive due to the following factors: 

• Longer, costlier hospitalizations and medical treatments: Over $2,000 per hospitalization
• More time spent in jails or prisons: $14,480 per year for, primarily, overnight jail stays and $20,000 for a bed in state or federal prison
• Greater reliance on emergency shelters: $8,067 more than the average cost of Section 8 Housing

How Much Does Permanent Supportive Housing Cost in New York? 

Though the price of Housing First policies would very likely run into the billions of dollars, the economic benefits would outweigh the investments. However, the emphasis should be on permanent supportive housing and not vouchers, which have failed to lead to a reduction in homelessness. 

The costs will vary based on the individuals, their circumstances and which organizations they are working with. Nevertheless, on average, permanent supportive housing and related interventions would save New York taxpayers an average of $10,100 per person per year. [4] 

How Does Permanent Supportive Housing Help New Yorkers?

Every program will provide its clients with different services. That said, common services include: 

• Referrals to programs for medical and/or mental health needs
• Financial literacy programs, such as budgeting 
• Developing life skills
• Crisis intervention 
• Job training and counseling in workforce readiness 
• Education counseling
• Social activities that build and promote community

In short, permanent supportive housing gives the beneficiary the stability they need to improve their quality of life and break the cycle of homelessness. 

How Can You Help Provide Permanent Supportive Housing?

Despite these massive benefits, your local, state and/or federal representatives may be intimidated by the upfront costs. While the authors of this blog tend to avoid politics, we would like to remind everyone that it is our duty as citizens to hold our leaders accountable, regardless of political affiliation, and demand they serve even the most vulnerable of their constituents.

If you or someone you know needs permanent supportive housing, please don't hesitate to contact Community Access.  They're a nonprofit organization whose mission is to expand opportunities in housing, health and human rights.  

Whether you want to help your fellow New Yorkers or need help yourself, Mentor A Promise and its network of partner organizations are here for you. 

Contact Mentor A Promise Today 

Our organization recognizes the immense potential within each individual and seeks to provide them with the educational resources and opportunities they need to thrive. To that end, we have built a strong network of family shelters, educational institutions and community organizations to support homeless children, youths and their families. Click these links to learn more about what we offer or to get involved. Together, we can break the cycle of homelessness.