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    The Ezra Klein Show

    What We Learned From the Deepest Look at Homelessness in Decades

    Tue Jul 18 2023
    HomelessnessHousing CrisisCaliforniaStructural FactorsHousing First PoliciesMartin v. Boise DecisionPrevention StrategiesAffordable HousingPrivate Equity FirmsPolicymakers' Actions

    Description

    This episode explores the issue of homelessness in California, focusing on the structural factors contributing to high homelessness rates and the challenges faced by cities in addressing the problem. It discusses the impact of the Martin v. Boise decision on unsheltered homelessness and the importance of prevention strategies. The effectiveness of housing first policies and the need for affordable housing are also examined. The episode highlights the role of private equity firms in the housing crisis and explores policy solutions to address housing affordability. It concludes with a discussion on the challenges of implementing housing reforms and efforts to address housing affordability in different cities.

    Insights

    Structural factors play a significant role in homelessness rates

    Comparing West Virginia and California shows that structural factors contribute to high homelessness rates.

    The theory that homeless people rush into California is disproven

    Most homeless individuals surveyed in California were already living there before becoming homeless.

    Housing first policies have been effective in reducing chronic homelessness

    'Housing first' policies prioritize providing housing without requiring proof of sobriety or employment.

    The Martin v. Boise decision affects unsheltered homelessness in California

    The court decision prevents clearing tent encampments without providing reasonable alternatives.

    Prevention is crucial in addressing homelessness

    Small interventions like asking individuals leaving jail if they have somewhere to go can help prevent homelessness.

    The lack of affordable housing exacerbates the homelessness problem

    There is often a gap between temporary shelter and permanent housing for low-income individuals.

    Private equity firms are not the main cause of the housing problem

    The narrative of private equity firms buying up housing stock may not be accurate.

    Policymakers have taken action to address the housing crisis

    Pro-housing bills have been passed in various states to address the housing crisis.

    Building more homes can provide opportunities for families and individuals

    Increasing housing construction can help address the housing affordability problem.

    Efforts to address housing affordability vary in different cities

    Cities are passing laws to address the housing affordability problem, and new suburbs are experiencing increased demand.

    Chapters

    1. The Podcast is Looking for a New Senior Editor
    2. Homelessness in California
    3. Homelessness in California (Continued)
    4. The Martin v. Boise Decision and Homelessness in California
    5. Challenges Faced by Cities in Addressing Homelessness
    6. Factors Contributing to Homelessness and the Importance of Prevention
    7. The Effectiveness of Housing First Policies and the Challenges of Addressing Homelessness
    8. Challenges in Addressing Homelessness and the Need for Affordable Housing
    9. Addressing Housing Affordability and the Role of Private Equity Firms
    10. The Housing Crisis and Policy Solutions
    11. The Challenges of Implementing Housing Reforms and the Need for More Housing
    12. Efforts to Address Housing Affordability in Different Cities
    Summary
    Transcript

    The Podcast is Looking for a New Senior Editor

    00:03 - 07:05

    • The podcast is looking for a new senior editor to manage the show team and drive editorial.

    Homelessness in California

    06:57 - 12:49

    • California has a high concentration of homelessness due to its high housing costs.
    • Homelessness is influenced by structural conditions, social safety net thickness, and individual risk factors.
    • Comparing West Virginia and California shows that structural factors play a significant role in homelessness rates.
    • Structural factors contribute to the housing problem in West Virginia, where there are more homes than people who want to live there.
    • Researchers have found correlations between poverty, opioid addiction, and homelessness, but these correlations do not prove causality.

    Homelessness in California (Continued)

    12:30 - 18:32

    • The theory that homeless people from all over the country rush into California due to its warm weather and generous policies is disproven by a study from UCSF and the Benioff Center.
    • Most homeless individuals surveyed in California were already living there before becoming homeless, as leaving their support networks and familiar surroundings is unlikely.
    • The survey data used in the study includes identifying questions about respondents' hometowns and qualitative interviews to ensure accuracy.
    • Another finding of the report is that when people become homeless, they often don't move far from their previous location, even if it's in a county with a severe housing problem like California.
    • It is difficult for individuals experiencing homelessness to make major life changes due to lack of resources and support.
    • Even if all homeless individuals in California were not originally from there, it wouldn't change the fact that people can freely move within the United States.

    The Martin v. Boise Decision and Homelessness in California

    18:05 - 24:25

    • The end game of proving that all homeless people in California are not from California is unclear, as it is not a country with borders.
    • Blaming homelessness on non-residents can be an attempt to dehumanize the homeless and avoid taking responsibility for policies that led to the issue.
    • The theory that generous social insurance programs in California attract homeless individuals implies that being meaner to them would solve the problem, rather than addressing housing issues.
    • There is a correlation between unsheltered homelessness and weather, but it's unclear what drives this relationship.
    • California has an unusually high rate of unsheltered homelessness due to a court decision (Martin v. Boise) that prevents clearing tent encampments without providing reasonable alternatives.
    • The Martin v. Boise decision does not prohibit clearing encampments but requires offering reasonable alternatives, which has affected cities under the Ninth Circuit's jurisdiction.
    • Cities have tried various approaches to comply with the ruling, such as providing hotel vouchers, but there is ambiguity around what constitutes meaningful capacity for shelter.
    • While the ruling restricts large-scale clearances of visible encampments, some cities still find ways to evict homeless individuals without providing adequate alternatives.

    Challenges Faced by Cities in Addressing Homelessness

    24:04 - 29:50

    • Cities are restricted in their ability to address homelessness due to unclear guidelines on providing meaningful capacity.
    • 36% of surveyed populations in California experienced a sweep by authorities, resulting in loss of medication, cell phones, and personal IDs.
    • The fight between politicians and courts regarding homelessness is dysfunctional.
    • Homelessness encompasses visible disorder and encampments, which makes it challenging to respond with effective policies.
    • Many individuals entering homelessness were previously leaseholders or mortgage holders.
    • Job loss and major life events often contribute to the downward slide into homelessness.
    • Homelessness is not a static state but a situation where individuals feel close to being housed again before circumstances worsen.
    • Losing housing often occurs within a median of 10 days after an event, leaving little time for alternative arrangements.
    • Social conflicts frequently lead to the loss of temporary housing, pushing individuals further into homelessness.
    • Chronic homelessness becomes harder to escape as it creates barriers for reintegration into stable housing.

    Factors Contributing to Homelessness and the Importance of Prevention

    29:30 - 35:31

    • Scarring is a concept in the homelessness business that refers to the multiple problems that arise when someone becomes homeless.
    • 81% of people experiencing homelessness come from a housed situation, and they become vulnerable to various issues once on the street.
    • Homeless individuals often resort to drugs or alcohol to stay awake or cope with despair.
    • Being homeless increases the risk of victimization and arrest, leading to trauma and decreased job prospects.
    • Prevention is crucial, but providing housing at the moment someone is about to become homeless is also important.
    • Small interventions like asking individuals leaving jail if they have somewhere to go can help prevent homelessness.
    • The report highlights Carlos's story as an example of how someone's situation deteriorates as they experience different phases of homelessness.
    • Policy interventions for homelessness are lacking, and many people are unaware of available resources or struggle to access them.
    • 'Housing first' policies, which prioritize providing housing without requiring proof of sobriety or employment, have been effective in reducing chronic homelessness.

    The Effectiveness of Housing First Policies and the Challenges of Addressing Homelessness

    35:09 - 41:27

    • Housing first policies have been effective in reducing homelessness for those who are able to access them.
    • The problem of homelessness is not just about the current group of homeless individuals, but also about preventing more people from falling into homelessness.
    • Housing first requires building a significant amount of housing, which can be challenging in areas with high housing costs and restrictions on construction.
    • Houston has successfully reduced homelessness by 63% since 2011 using the housing first model, but they also have ample housing availability.
    • There is a perception that simply throwing money at the problem will solve it, but addressing homelessness requires more than just financial resources.
    • Critics argue that despite spending billions of dollars, there are still homeless individuals, suggesting that the approach is not effective.
    • Some on the right believe that allowing homeless encampments and disruptions infringes on the enjoyment and order of cities for others.
    • Visible disorder caused by homelessness in certain areas creates real costs and concerns for communities.
    • The focus should be on preventing homelessness from spiraling out of control and minimizing its impact on public spaces.

    Challenges in Addressing Homelessness and the Need for Affordable Housing

    41:03 - 46:49

    • Open-air drug use and homelessness are prevalent in certain areas like the tenderloin in San Francisco and Skid Row in Los Angeles.
    • San Francisco has a high level of disorder, including shoplifting, which has led to many items being behind plastic in stores.
    • The argument from the right is that permissive drug use and tolerance have contributed to the worsening situation.
    • Policy debates often frame the issue as a dichotomy between caring for homeless people and being realistic about the problem, but this framing is incorrect.
    • Pushing people out of downtown areas without providing alternative solutions will only lead to more people falling into homelessness.
    • Clearing out downtowns alone will not solve the problem; all aspects of homelessness are interconnected.
    • Investment in shelters is necessary, but public funds should be allocated effectively to address the root causes of homelessness.
    • The lack of affordable housing options exacerbates the problem, as there is often a gap between temporary shelter and permanent housing for low-income individuals.
    • Banning certain types of cheap housing options does not solve poverty; there needs to be a focus on creating affordable alternatives that meet basic quality standards.

    Addressing Housing Affordability and the Role of Private Equity Firms

    46:24 - 52:52

    • There should be cheap housing options available to ensure that poor people are not on the street.
    • Subsidization and code enforcement can help maintain housing quality.
    • Shared living arrangements can be explored as a solution.
    • Expensive housing costs prevent people from accommodating family members, leading to instability.
    • Liberalizing housing regulations can create more affordable options for low and middle-income individuals and their families.
    • The narrative of private equity firms buying up housing stock may not be the main cause of the housing problem.
    • The whole country saw a run-up in housing prices during the COVID-19 pandemic, suggesting other factors at play.
    • Local levels may show higher numbers of homes purchased by large investors, but it's a small percentage overall.
    • Many investors are renting out or reselling homes, adding liquidity to the market.
    • Medium or small investors make up a significant portion of home purchases during the pandemic.
    • Concerns about concentration in specific markets require further data analysis.
    • Homelessness is a long-standing policy problem that cannot be blamed on one entity alone.

    The Housing Crisis and Policy Solutions

    52:36 - 58:57

    • The urge to find a scapegoat for the housing crisis is a distraction from the core problem, which is a policy issue that requires real costs from everyone.
    • Large investors like Blackstone have been criticized for treating tenants poorly and violating tenant laws.
    • Investment in things like landlord registries can help track bad actors and ensure accountability.
    • Getting rid of private equity firms like Blackstone will not solve the homelessness problem in California.
    • The housing crisis was at the core of the Great Recession, leading to a decrease in construction permits and investment in housing.
    • Sunbelt cities provided an escape valve for affordable housing, but they are also reaching their commuting zone limits and running out of cheap land for single-family homes.
    • The Great Recession had a negative impact on construction and exacerbated the need for more density in big cities.
    • Policymakers have taken action to address the housing crisis, especially since the pandemic highlighted the run-up in prices.
    • Pro-housing bills have been passed in California, Montana, Texas, Colorado, Washington, Oregon, and other states.
    • Reforms allowing accessory dwelling units have led to increased permitting and more housing being built.

    The Challenges of Implementing Housing Reforms and the Need for More Housing

    58:28 - 1:02:24

    • Increase in permitting and housing construction, but no significant decrease in rents
    • Reforms to allow accessory dwelling units and triplexes have been slow to be implemented by developers
    • Major cities like San Francisco and Los Angeles still have a large percentage of single-family zoning
    • Making housing affordable would require building over four million units
    • Difficult to predict where people will want to live in the future
    • Unlikely for home prices to significantly fall without major changes or countervailing effects
    • Building more homes, even on a marginal scale, can provide opportunities for families and individuals
    • Recognition of the housing problem has increased, making it impossible to ignore

    Efforts to Address Housing Affordability in Different Cities

    58:28 - 1:02:24

    • Cities that are afraid of becoming like San Francisco are passing laws to address the housing affordability problem.
    • New suburbs in places like Nashville, Knoxville, and Charlotte are experiencing increased demand due to remote work.
    • Colorado's attempt to pass a major bill addressing housing costs failed, but efforts continue.
    • Books recommended for learning about homelessness and understanding systemic issues: 'Homeless is a Housing Problem' by Greg Colburn and Clayton Aldern, 'Children of Time' by Adrian Czakowski, and 'Strangers to Ourselves' by Rachel Aviv.
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