Cost of homelessness for society (Interview)

Today I had the opportunity to speak to Elena Esposito, a professor of Political Economy at the University of Lausanne in Switzerland. She had written a paper for her postgraduate degree detailing the impact of homelessness on the economy.  I didn't record our Skype conversation but did take some notes.
According to Ms. Esposito,"It costs society more than $10,000 per person per annum more to allow people to remain homeless than it does to provide them with “last resort” housing, such as in a caravan parks and boarding houses". 

It is the first time a cost-benefit analysis had been done in Switzerland addressing the issue of sleeping rough.

Her analysis showed that:

• Providing one person with a last-resort bed would generate a net benefit of $216,000 over 20 years. That averages to a net benefit of $10,800 per year. (75% of those benefits flow to society and the remainder to the individual.)

• For every $1 invested in last-resort beds to address the homelessness crisis, $2.70-worth of benefits are generated for the community over 20 years.

Indeed, it would seem that there is much to gain in economic and social terms, both for government and society, by assisting the homeless. This is because if homeless individuals find stable accommodation they require less healthcare and fewer emergency admissions, and they are less likely to be involved in crime, both as victims and perpetrators.

“They are more likely to reconnect with employment and education. Importantly, last-resort housing can greatly improve the quality of life of individuals.” said Esposito, “vulnerable populations like homeless people and street sleepers are particularly exposed to sustainability problems like climate change."

- Zinedine