Sam Wolfe Explains the Connection between Rent Prices and Homelessness

CHATTANOOGA (WDEF) — In Chattanooga, the past several years have seen an increase in homelessness as well as an increase in the average price of rent.

According to Homelessness and Supportive Housing Director Sam Wolfe, these facts are related.

“Numerous studies show a direct correlation between an increase in the cost of rent — and, more specifically, those who are rent-burdened — and homelessness,” Wolfe said.

For example, a study from Zillow found that, in Atlanta, an increase in of ten percent in the average price of rent is positively correlated with an increase in the homeless population of about 40 people.

“Rent-burdened” people are those who pay more than 30 percent of their income for housing costs.

“Approximately 44 percent of the renters in Chattanooga are rent-burdened… Approximately 20 percent of the renters that are paying more than fifty percent — FIVE ZERO — percent of their income toward housing,” he added.

According to Wolfe, those who have fallen into homelessness due to factors such as addiction represent a minority of the total homeless population.

In explaining the relationship between rent and homelessness, Wolfe points to stagnant wages.

“If the cost of housing triples but people’s wages triple with it, on average, as well, then it’s not an issue — people are able to afford that cost of living in our community, but, if you look at the cost of housing in relation to the average wages for folks, it hasn’t kept up,” Wolfe said.

According to Wolfe, the city is investing in pathways for people to increase their wages. One such pathway is the Google IT Certificate Program at the Enterprise Center.