One way inflation can increase the risk of homelessness is that it increases the cost of necessity items like clothes, food, and shelter. A recent analysis of economic data by the Washington Post found that low-income Americans spend an outsized portion of their money on these items compared to their wealthier counterparts.

In a 2020 study, researchers at the U.S. Government Accountability Office estimated that “a $100 increase in median rent was associated with a 9% increase in the estimated homelessness rate.” 1 New research sheds light on the precariousness of people’s housing situations in the midst of historically high rent prices and inflation, which may lead to increases in homelessness if left unchecked.

Research from the Government Accountability Office shows that for every $100 increase in the median rent price in a community, there is an associated 9% increase in homelessness.

Rising rents and persistent inflation increase the risk for people becoming homeless and serve as barriers to people who are trying to exit homelessness.