The Cost of Living Index as a Primary Driver of Homelessness: A Cross-State Analysis

Abstract

AbstractBackgroundHomelessness persists as a critical global issue despite myriad interventions. This study analyzed state-level differences in homelessness rates across the United States to identify influential societal factors to help guide resource prioritization.MethodsHomelessness rates for 50 states and Washington D.C. were compared using the most recent data from 2020-2023. Twenty-five variables representing potential socioeconomic and health contributors were examined. Given non-normal distributions, nonparametric statistical techniques, including correlation and predictive modeling, identified significant factors.ResultsThe cost of living index, mainly influenced by housing, transportation, and grocery costs, showed the strongest positive correlation with homelessness rates (all p <0.001). Unemployment, alcohol binging, taxes, and poverty were also influential factors. Opioid prescription rates demonstrated an unexpected negative correlation. Random forest classification emphasized the cost of living index as the primary contributor, with housing costs presenting the largest influence.ConclusionThis state-level analysis revealed the cost of living index, predominantly driven by housing expenses, as the foremost factor associated with homelessness rates, greatly outweighing other variables. These findings can help inform resource allocation to mitigate homelessness through targeted interventions.