The Effect of Housing First Programs on Future Homelessness and Socioeconomic Outcomes

Housing First programs provide housing assistance without preconditions for homeless individuals as a platform for rehabilitation. Despite the programs’ increasing popularity, limited evidence exists on their effects on socioeconomic outcomes. Using a novel dataset combining administrative records from multiple public agencies in Los Angeles County and a random case manager assignment design, I estimate that Housing First assistance reduces homelessness and crime, increases income and employment, and does not have a detectable effect on health-care utilization. Cost-benefit analysis implies that these potential savings offset program costs within 18 months. These findings demonstrate that Housing First can be rehabilitative and cost-effective