There are many misconceptions about homelessness, but here are the real facts on why homelessness occurs.

Myth: Affordable housing is readily available for people who work full-time.

Affordable housing is very hard to find for many people, and the data clearly shows how severe the affordability gap has become. According to the National Low Income Coalition’s Out of Reach 2025 report, a full-time worker in the U.S. must earn $33.63 per hour to afford a modest two-bedroom rental home and $28.17 per hour to afford a modest one-bedroom rental home at fair market rent. These required wages are far above the federal minimum wage of $7.25 per hour and exceed what most renters actually earn. In fact, there is no state, metropolitan area, or county in the U.S. where a person working full-time at minimum wage can afford a modest two-bedroom rental without spending more than 30% of their income on housing. This growing gap between wages and housing costs is a major economic driver of homelessness.

Myth: People become homeless because they choose to spend their money on other things instead of housing.

The escalating cost of living means that even middle-class people are forced to make hard decisions about what they can and cannot afford.  For low-income individuals and families, the cost of housing is just too steep.

It’s not that people choose to give up housing instead of food or healthcare — most people prioritize housing and go without other basic needs to try to remain housed. However, when housing costs exceed income, homelessness becomes unavoidable. This highlights the fundamentally economic nature of homelessness.

Myth: Domestic violence is a cause of homelessness.

Domestic violence may be a cause or contributing element to housing instability, especially when it forces the victim out of their housing environment. Domestic violence, however, is not a cause of homelessness. Vulnerability to homelessness can become greater if the victim lacks access to affordable housing and economic resources. Without these resources, escape from violence potentially means escape into homelessness.

Myth: Mental illnesses, disabilities, and substance abuse are causes of homelessness.

Problems such as mental illness, disability, and substance abuse are often identified as causes of homelessness, but this is not true because many people experience the above issues but are able to live in their homes because of their income, medical care, or assistance. Becoming homeless can make these problems worse due to the effects of living on the streets, including the lack of safety and security that comes from not having a stable place to rest.