If there are so many people who can’t afford housing, why does the cost continue to rise? Shouldn’t the cost fall because there isn’t a demand?
In: Economics
Most homeless have other factors that affect their ability to find housing, like drug addiction or mental illness. So those factors limit their ability to find a job, which then leads to homelessness.
They probably weren’t ever homeowners or in the market to buy a house. More like apartment dwellers. However they may have been homeowners who got addicted to drugs, but that has nothing to do with the amount of people wanting to buy a home. The homeless population has removed themselves from the supply and demand equation in the housing market.
There are always normal, working people moving into an area and moving out of an area. If there are more moving in, demand rises, and if there is more moving out, demand falls. But the homeless population is completely separate and does not affect that in the least.
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