Homelessness in California
John M. Quigley, Steven Raphael, and Eugene Smolensky

October 2001

This study examines the theory that growing income inequality between the rich and the poor has been a contributing factor to the increasing homelessness in California.  The authors examine a number of economic factors that affect homelessness, in particular the relationship between rent, household income, and homelessness in a number of locations.  They find that the greater the disparity between rents and incomes (i.e., as rents move higher relative to incomes), the greater the incidence of homelessness.  They also assess the extent to which policy interventions in the housing market can lower homelessness rates in the four largest metropolitan areas in California.