Kathmandu— A recent policy brief from the Center for Economic and Policy Research (CEPR) argues that current federal housing policies exacerbate homelessness by directing funding towards wealthier individuals while neglecting those most in need. The report highlights how programs like the mortgage interest deduction disproportionately benefit high-income households, costing more than twice as much as the Low-Income Housing Tax Credit. With only a quarter of eligible renters receiving assistance and less than 10 percent of unhoused people being provided housing through existing programs, the study reveals stark racial disparities in homelessness rates, particularly among Black men.

Disparities in Homelessness Rates

While comprising 12 percent of the overall U.S. population, Black individuals accounted for 30 percent of the homeless population in 2024. The Hispanic population also experiences disproportionately high rates of homelessness, representing 31 percent of those unhoused despite making up 20 percent of the national population. Data indicates that men experience homelessness at a higher rate than women (27 versus 18 per 10,000 in 2024), and applying these overall figures to racial demographics suggests a Black male homelessness rate of approximately 71 per 10,000.

Underlying Factors Contributing to the Crisis

The CEPR brief points out that Black men face compounded disadvantages compared to other groups. They often experience lower incomes, higher debt burdens, and increased rates of incarceration – all factors that contribute to housing instability. A 2021-2022 study conducted by the University of California San Francisco (UCSF) found that 75 percent of Black individuals experiencing homelessness were male, a significantly higher proportion than the overall share of men in the homeless population as reported by the Department of Housing and Urban Development (HUD). Using this UCSF data yields an estimated Black male homelessness rate of 89 per 10,000, suggesting that existing figures may underestimate the true extent of the problem.

Proven Solutions and Policy Reversals

The report emphasizes that strategic investments in programs like Housing First have demonstrated success in reducing homelessness. From 2009 to 2022, homelessness among veterans declined by 55 percent through collaborative efforts between the Department of Veterans Affairs and HUD. However, current policy trends threaten to undermine these gains. The National Alliance to End Homelessness notes that funding an end to nationwide homelessness would require $9.6 billion – a small fraction of other federal programs like the Department of Defense. Despite this feasibility, proposed cuts to homeless services and changes to vital support programs such as Medicaid and SNAP are expected to worsen the crisis.

Shifting Priorities and Tax Policies

The policy brief criticizes the Trump administration’s abandonment of the Housing First approach, despite its proven effectiveness. It also highlights how safety net cuts enacted through legislation like the “One Big Beautiful Bill Act” were implemented to finance tax reductions for wealthy individuals. The CEPR argues that prioritizing the needs of vulnerable populations over tax breaks for the rich would significantly increase the availability of affordable housing.

The report underscores the urgent need for policy changes that prioritize affordable housing and support services for those experiencing homelessness, particularly within communities of color. Without a shift in priorities, existing disparities are likely to worsen.

(With inputs from CounterPunch)

Originally published on abcnews.com.np.