“According to the UNCC study, housing these people led to dramatic cost savings that more than paid for the cost of putting them in decent housing, including $1.8 million in health care savings from 447 fewer ER visits (78% reduction) and 372 fewer hospital days (79% reduction). Tenants also spent 84 fewer days in jail, with a 72% drop in arrests.
What’s more, Moore Place is enabling the formerly homeless to find their own sources of income. Without housing, just 50% were able to generate any income. One year after move-in, they’re up to 82%. And after an average length of 7 years of homelessness, 94% of the original tenants retained their housing after 18 months, with a 99% rent collection rate.”
The cost of NOT housing homeless people is exorbitant — a stunning $39,458 in combined medical, judicial and other costs. This pilot program (rent for housing at Moore Place) is paid for 30% by tenant benefits (welfare, etc) and an additional $14k per person per year (comes from federal funding and donations). We are looking at more than $25k cheaper to house a homeless person per year than to leave them on the streets.
Moral legitimacy of this aside, economics supports providing more transitional/homeless housing.