Working Paper

The Effect of Housing First Programs on Future Homelessness and Socioeconomic Outcomes

Abstract: Housing First programs provide housing assistance without preconditions for homeless individuals as a platform for rehabilitation. Despite the programs’ increasing popularity, limited evidence exists on their effects on socioeconomic outcomes. Using a novel dataset combining administrative records from multiple public agencies in Los Angeles County and a random case manager assignment design, I estimate that Housing First assistance reduces homelessness and crime, increases income and employment, and does not have a detectable effect on healthcare utilization. Cost-benefit analysis implies that these potential savings offset program costs within 18 months. These findings demonstrate that Housing First can be rehabilitative and cost-effective.

Keywords: Homelessness; Housing First; Case managers;

JEL Classification: H42; I38; J18;

https://doi.org/10.18651/RWP2022-03

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Research Working Paper

Publication Date: 2022-03-29

Number: RWP 2022-03