Homelessness has become a billion-dollar industry in the United States, with nonprofit organizations partnering up with government, real-estate developers, and private parties to provide temporary solutions for an on-going problem. Studies show that it is a lack of affordable housing and ridiculously high housing costs that are to blame. The logical solution, then, is to create more affordable housing units or, better yet, do what other countries are doing and declare housing a fundamental human right for all US citizens, then invest in non-market housing projects to end homelessness once and for all. This report aims to shed light on why homelessness in our country has been allowed to continue.
According to the 2024 Industry Report published by IBISWorld, homelessness is an industry, called Community Housing & Homeless Shelters in the US. Service providers are nonprofit organizations who enjoy tax exemption under state law and receive funding through grants and donations (which can be tax writeoffs for donors.) Since the industry emerged in 2019, it has earned $21.9b in revenue and $1.5b in profit.
The scope of the industry is to provide temporary shelter for victims of domestic violence, sexual assault, and child abuse; temporary residential shelter for the homeless, runaways, and families caught in the midst of medical crises; and transitional housing and assisted living for low-income individuals and families.
According to the Annual Homelessness Assessment Report (AHAR 2023), of the 653,100 people experiencing homelessness throughout the US, 60.7% were sheltered, while 39.3% remained unsheltered. The 39.3% is considered an underserved market, full of potential.
As a result of the pandemic, industry revenue grew at a compound annual growth rate (CAGR) of 5.0%, reaching $21.9 billion by 2024, with a 2.0% climb in 2024 alone. Notably, industry profit rose to 7.0%, with most profit reinvested into operations, as 96.0% of shelters are nonprofits and 98.0% of community housing providers are federally tax-exempt.
Social impact bond financing can be targeted for reducing homelessness. These bonds, which pay a return to investors only if a set of agreed social outcomes are achieved, are high-risk investments but are still on the rise. Both private investors and companies can purchase SIBs. They offer a way for private capital to inject significant funding into tackling societal issues like homelessness. Even though the cost burden is on the investors if the project fails, they offer both a social good and a financial return.
Temporary homelessness can also be addressed through alternative living arrangements, such as staying with friends, family, or neighbors. Sometimes, individuals may temporarily reside in a hotel or motel until they can secure more affordable housing options. These arrangements serve as interim solutions until stable and affordable housing can be obtained. A portable shelter (tent, car, van) and a site (parking lot, campground, or legal encampment) can solve the shortage of protection when natural disasters occur or if there are safety concerns or deficiencies in large homeless settings. Other examples are Cardborigami, Homeless Push Cart, I-Gloobox, WheeILY, Rolling Shelter, paraSITE, Urban Nomads, EDAR and Ecocapsule.
Increasing housing prices strain budgets, making it difficult for individuals to afford homes. This leads to a higher demand for community housing. Landlords may evict residents to sell at inflated prices, exacerbating housing challenges and potentially causing homelessness. Gentrification due to rising prices can also make finding affordable housing harder, increasing homelessness rates.
Due to the high cost of living, high rent and population density, homelessness is clustered in dense urban locations. The need for services is in greater demand in urban locations, so growth in urban locations or dense geographies will increase the demand for services and the ability to get funding.
Federal funding for social services is critical in funding community housing and homeless shelters by providing financial resources, services and infrastructure. Changes in funding or government policy can significantly impact revenue. Government agencies responsible for distributing funds can implement regulations and guidelines that substantially impact community housing and homeless shelters. Decreases in federal funding pose a potential threat to the industry.
A rise in the poverty rate increases the number of individuals seeking community housing and shelter services, increasing demand for the industry. Conversely, as the number of individuals earning above the poverty level swells, the number of persons who can afford housing and demand for industry services will drop.
Unemployment usually leads to a decline in incomes, making housing less affordable, so a rise in the national unemployment rate will increase demand for community housing services. Conversely, a decrease in unemployment will reduce the number of individuals seeking the industry’s services. An increasing national unemployment rate represents an increase in demand and an opportunity for the industry.
An economy with a reduction in per capita disposable income will have a higher percentage of individuals struggling to afford housing, which can increase demand for community housing and homeless shelter services. In rising per capita disposable income periods, individuals have more financial resources to secure their housing and rely less on community housing and homeless shelters.
Homelessness has become an industry in the United States. While some of these people do struggle with such things as mental health or substance abuse, this is not the case for all homeless people in the US. High costs and a lack of affordable housing are to blame. Housing is not considered a fundamental human right in the US, and this needs to change. We need to restructure our current housing system to non-market housing like in Austria and other parts of the world, where everyone gets to enjoy safe, stable, permanent housing. Temporary shelters are great for emergencies but they are not a solution and are not cost effective in the long-run, especially when you consider the fact that these people are considered “sheltered homeless”, meaning they are still homeless. We need to change the narrative about the homeless and remove the social stigma. People do not suddenly lose their status as “human” just because they have, for whatever reason, lost their homes. This is wrong. Furthermore, it is down-right shameful to think of people profiting from the misery of others. Take it from one who knows firsthand, being homeless is miserable. You feel hopeless, degraded, and exhausted. What these people need is a home of their own. Not a bed in a dorm with dozens of strangers. Not a bed in a transitional house or treatment center. An actual home. As for assisted or supportive housing, not every homeless person needs this, and definitely not for the rest of their lives. Investing in permanent housing solutions is the only solution that truly makes sense.
Follow the link above to read the IBISWorld report and the whole story.
We, the 99%, Declare:
We are not passive participants in a system that exploits our labor, erodes our dignity, and concentrates wealth in the hands of a few. We are thinkers, builders, caregivers, artists, and dreamers—and we refuse to be disposable.
The Problem:
- The wealth gap has become a chasm. While billionaires accumulate fortunes beyond comprehension, millions struggle to afford housing, healthcare, and education.
- Our labor powers the economy, yet our wages stagnate while executive compensation soars.
- The political system, shaped by corporate interests, protects the elite while silencing the majority.
- We are told to work harder, budget better, and be grateful—while the rules are rigged against us.
The Truth:
- This is not accidental. It is systemic.
- The myth of meritocracy masks a reality of inherited privilege and institutional bias.
- Economic inequality is not just a financial issue—it is a moral crisis.
Our Vision:
- A world where wealth is shared, not hoarded.
- A society where every person has access to housing, healthcare, education, and opportunity.
- An economy that values dignity over profit, cooperation over competition, and justice over exploitation.
Our Demands:
- Progressive taxation on extreme wealth and corporate profits.
- Universal basic income and living wages for all workers.
- Debt forgiveness and access to free public education.
- Public ownership of essential services—healthcare, housing, energy, and transit.
- Transparent governance and campaign finance reform to end corporate control of politics.
Our Strategy:
- Educate. Organize. Mobilize.
- Build coalitions across race, class, gender, and geography.
- Support labor movements, mutual aid networks, and community-led initiatives.
- Use art, media, and storytelling to awaken hearts and minds.
- Vote, protest, and create alternatives—until the system reflects our values.
Our Belief:
We are not powerless. We are many. And together, we can rewrite the rules.
- How do laws, algorithms, and data infrastructures encode inequality?
- How do financial flows reinforce elite influence?
- Structural Definition: Usefulness as Economic Utility
- Why do we “spell”?
- Myths, narratives and the labor of consent
- How the Elite Maintain Control
- 10 Elite Patterns Worth Naming
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