Lack of Research on Link Between Foreclosures and Homelessness a Missed Opportunity

A report from the Institute for Children, Poverty and Homelessness (ICPH) stresses the need for further research to study the impact of the foreclosure crisis on rates of homelessness during the Great Recession. From 2005 to 2010, foreclosure filings increased by 239%, to a total of 2.9 million affected properties. Despite the increases in family homelessness seen during the recession, there has been no nationwide data collection effort to track the relationship between foreclosure and trends in homelessness. ICPH finds that without proper data collection, solid policy responses will be difficult to develop. In this report, ICPH summarizes existing research on the link between homelessness and foreclosures and offers direction for future research. Across the nation, one in every 46 properties entered foreclosure in 2009. States in the southwest in particular were affected by the crisis. Nevada had a foreclosure rate of one in 10, Arizona one in 17 and California one in 21. Florida had the highest rate on the East Coast with one in 17.ICPH suggest that states with sharp increases in foreclosure also experienced a rise in homeless households. Using annual foreclosure filing data between 2006 and 2009 and point-in-time homelessness counts between 2007 and 2010, the researchers identified a strong correlation between the increase in foreclosures and homelessness rates in California. Homeward, a nonprofit in Richmond, Virginia, is one of a few organizations nationwide that undertook steps to collect survey data from homeless clients since 2008 and study the relationship between increased foreclosure rates and homelessness. Homeward’s data indicate that between July 2008 and January 2012, the share of foreclosures leading to homelessness rose from 6% to 13%. Homeward found that, in 2012, two thirds (66%) of families were homeless directly after foreclosure. Of the families who became homeless, (42%) doubled up with friends and one quarter (24%) entered shelter. Fewer than one third (31%) of families foreclosed upon were able to find their own housing. Because nationwide data tied to the outcomes of households experiencing foreclosures are limited, researchers are unable to draw firm conclusions. Authors note that adding questions related to foreclosure to mandatory point-in-time surveys, or Homeless Management Information Systems (HMIS) client intake forms, would have been integral to the investigation. Looking forward, better data will support the development of stronger policy responses to assist families experiencing foreclosure.Click here to read Foreclosures and Homelessness: Understanding the Connection.