Supportive Housing:
What is the cost of supportive housing?
Supportive housing saves money, while benefiting communities across the country. It costs essentially the same amount of money to house someone in stable, supportive housing as it does to keep that person homeless and stuck in the revolving door of high-cost crisis care and emergency housing. The Corporation for Supportive Housing’s cost studies prove that we can either waste money keeping people homeless or spend those dollars on a long-term solution that produces positive results for people and their communities.
The most comprehensive case for supportive housing is made by a recently released study from the University of Pennsylvania's Center for Mental Health Policy and Services Research. Researchers tracked the cost of nearly 5,000 mentally ill people in New York City for two years while they were homeless and for two years after they were housed. They concluded:
- Supportive and transitional housing created an average annual savings of $16,282 by reducing the use of public services: 72% of savings resulted from a decline in the use of public health services; 23% from a decline in shelter use; and 5% from reduced incarceration of the homeless mentally ill.
- This reduction in hospitalizations, incarcerations, and shelter costs nearly covered the cost of developing, operating and providing services in supportive housing. Providing a mentally ill person with permanent supportive housing costs only $995 per year more than allowing that person to remain homeless .
In other words, based on the most conservative assumptions - without taking into account the positive impacts on health status and employment status, or improvements to neighborhoods and communities - it costs little more to permanently house and support people than it does to leave them homeless.
Further evidence shows that supportive housing provides public benefits beyond these savings. An analysis of the Connecticut Supportive Housing Demonstration Program found that supportive housing improved neighborhood safety and beautification, increasing or stabilizing property values in most communities. Years of experience confirm that neighbors embrace supportive housing as an asset to their communities.
Source: Corporation for Supportive Housing
Other questions & answers related to this topic:
What is supportive housing?
Does supportive housing have the "look and feel" of other types of housing?
How does supportive housing work to end homelessness?
What impact does supportive housing have on health, employment, mental illness, and substance abuse in communities where it is has been implemented?
What are some examples of communities where permanent supportive housing has been used effectively?
What are the key principles of supportive housing?
What types of services are typically provided in supportive housing programs?