Mass homelessness in America is a crisis rooted in federal policies, economic shifts

The haunting specter of mass homelessness has once again gripped America, the richest country in the history of the world, echoing the stark realities of the Great Depression era.

However, this crisis is not a product of individual failings but rather a damning indictment of systemic injustices perpetuated by federal policies and economic ideologies.

Lisa McCormick, a vocal activist from New Jersey, succinctly captures the essence of the issue: “We do not have homelessness in America because poor people are lazy, and rich people work hard. We have homelessness because the world is unfair and our governments have failed to remedy greed, unfairness, and poverty.”

The resurgence of mass homelessness in the early 1980s coincided ominously with the advent of supply-side economics and the infamous trickle-down theories of Reaganomics.

McCormick has long advocated a reversal of Reaganomics and a return to the kind of policies behind the New Deal and the Great Society’s war on poverty.

“As the federal government slashed funding for affordable and low-income housing, homelessness burgeoned, tripling or quadrupling in many US cities,” said McCormick. “The repercussions were profound, as emergency shelters mushroomed across the nation to accommodate the swelling ranks of the homeless.”

Behind the heartbreaking narratives of individuals experiencing homelessness lie the insidious forces of federal policies and market dynamics.

With successive administrations failing to address the root causes of the crisis, local governments have resorted to punitive measures, exacerbating the plight of the homeless.

Draconian laws criminalizing basic human activities such as sleeping or seeking shelter only serve to compound the suffering of the most vulnerable members of society.

The culpability of federal policies in precipitating homelessness cannot be overstated. Decades of cuts to affordable housing programs, coupled with a misguided reliance on the market to address housing needs, have fueled the crisis.

Across New Jersey, there is a shortage of 214,475 rental homes affordable and available to households, whose incomes are at or below the poverty line or 30% of their area median income.

Many of these extremely low-income households are severely cost-burdened, spending more than half of their income on housing. It is common to find people making about $33,290 in wages in areas where they need an income of at least $69,675 to support their households.

Severely cost-burdened poor households are more likely than other renters to sacrifice other necessities like healthy food and healthcare to pay the rent and to experience unstable housing situations like evictions.

Rather than addressing the systemic failures of the housing market, federal interventions have often focused on “fixing” homeless individuals, perpetuating a cycle of neglect and marginalization.

Moreover, the insidious influence of institutional investors, epitomized by behemoths like BlackRock, State Street, and Vanguard, has further exacerbated the housing crisis.

By swooping in to outbid prospective homebuyers with cash offers and amassing vast portfolios of residential properties, these corporations have driven up home prices and exacerbated rental affordability, relegating millions to the brink of homelessness.

Amidst this dire landscape, voices of advocacy and solutions emerge. Independent presidential candidate Robert F. Kennedy Jr. denounces the stranglehold of corporate interests on the housing market and proposes bold initiatives to restore affordable homeownership to Americans. His vision includes federal backing of mortgages at 3%, financed by tax-free bonds, to empower aspiring homeowners and counter the dominance of institutional investors.

Senator Bernie Sanders echoes the urgency of addressing the housing crisis with a comprehensive Homes Guarantee plan. From investing $2.5 trillion to build affordable housing units to enacting a Tenants’ Bill of Rights, Sanders’ proposals underscore the imperative of systemic reforms to ensure housing as a fundamental right for all Americans.

“The housing crisis is a serious problem that should be considered a national emergency,” said McCormick. “When I was growing up, the average American could afford to own their own home, but now there is virtually no city in the United States where a full-time minimum-wage worker can afford to rent a decent two-bedroom apartment, and buying a home is considered unrealistic for a majority of working families.”

This sentiment is driven by harsh economic realities, with 63% of Americans stating they cannot afford to purchase a home, in a survey of 1,008 people from across the U.S. about their home buying plans in 2024, conducted by IPX1031. The younger generations are most impacted with 87% of Gen Zers and 62% of Millennials saying that buying a home is unaffordable.

Nearly 1 in 4 Americans no longer believe homeownership is a sound long-term investment, and almost 1 in 3 don’t think homeownership should still be considered part of the American dream. This shift in perception is particularly pronounced among younger generations, as 53% of Americans believe that homeownership is unattainable for Gen Z and Millennials who currently don’t have property.

In fact, 1 in 3 Americans believe the housing market will get worse.

As the nation grapples with the scourge of mass homelessness, the need for decisive action and visionary leadership has never been more apparent.

By confronting the systemic inequities perpetuated by federal policies and corporate interests, America can aspire to fulfill the promise of housing justice and dignity for all its citizens.