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American Focus > Blog > Economy > Does poverty cause homelessness? – Econlib
Economy

Does poverty cause homelessness? – Econlib

Last updated: June 3, 2025 7:13 pm
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Does poverty cause homelessness? – Econlib
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Exploring extremes can be quite enlightening. If we were to accept the notion that capitalism inevitably breeds selfishness, how likely would it be that the nation epitomizing free-market principles is also the one boasting the highest levels of equality? Yet, that is indeed the case.

If we were to believe that declining fertility rates stem from the financial burdens of child-rearing, what are the chances that the steepest drop in global birth rates would be observed in a country that has experienced unprecedented economic growth over the last 60 years? But that’s precisely what happened.

Today, I stumbled upon another intriguing instance:

As reports of homelessness skyrocket across the United States, Mississippi’s statistics are moving in a remarkably positive direction.

According to USAFacts, only 3.3 individuals out of every 10,000 experienced sheltered homelessness in Mississippi last year. With 982 individuals experiencing homelessness in Mississippi in 2023, the state proudly holds the title for the lowest rate of homelessness in the nation. This figure represents a mere 0.0015% of the total homeless population in America, which is more than five times lower than Mississippi’s share of the national population.

This link offers comprehensive data across all fifty states:

It’s worth noting that the color coding reflects total homeless populations, which is why Wyoming is depicted as having fewer homeless individuals than Mississippi. However, by clicking through the link for each state, one can uncover per capita figures that provide a more accurate representation. New York and Hawaii lead in the highest rates, while it has been reported that California has the largest number of homeless individuals living on the streets. Conversely, many homeless individuals in New York find shelter in facilities. In per capita terms, Mississippi remains at the bottom.

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This leads me to ponder: If poverty truly were the root cause of homelessness, how likely would it be for the state with the lowest homelessness rate to also be the one labeled as the poorest? Even without any causative link, the odds would stand at merely 1 in 50. If there were a positive correlation between state poverty rates and homelessness, then the existence of Mississippi as the state with the lowest homeless rate would be even more astonishing.

From my perspective, the factors contributing to homelessness are diverse. For individuals residing in shelters, restrictive building regulations play a significant role. For those living on the streets, issues related to substance abuse and mental health are paramount. Poverty is but a minor factor in this complex equation.

TAGGED:EconlibhomelessnessPoverty
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