2006 Housing Policy Study: The Hidden Homeless and Households at Risk of Homelessness by SMS Research & Marketing Services, Inc.

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Hidden homelessness also tends to rise as the unemployment rate rises. That is, the number of hidden homeless households increases as more people become unemployed. Figure 1 shows how affordability and unemployment interact and affect hidden homelessness. The trend has been similar for households at risk for homelessness. The general improvement in the economy, job growth, and decreasing unemployment combine to provide greater household income, discretionary spending, and savings. As a result, households are better off than they were in 1992 and the at-risk rate has dropped since then. However, in 2006 the at- risk rate has increased sharply suggesting that fewer Hawaii households perceive their current housing situation as stable. It should be noted that measurements of at-risk are based solely on residential perceptions about the condition of the housing market rather than actual behaviors. Due to this fact, the measure of at-risk is more subjective and tends to have larger variations. It seems clear that in 2006 residents perceived the housing situation as far less favorable than in 1997 and 2003. This is not necessarily a precursor to an economic downturn, but it does suggest that more residents expect worsening economic conditions than in the past. CHARACTERISTICS OF HIDDEN HOMELESS AND AT-RISK HOUSEHOLDS Across the State, housing problems associated with homelessness are more likely to affect persons who are younger, non-Asian, relatively recent arrivals to our state, and persons with fewer economic resources. The head of an at-risk household was much more likely than the general population (24% vs. 9%) to be less than 35 years of age and much less likely to be over 60 (20% vs. 43%). Both hidden homeless and at-risk households included disproportionately higher numbers of Caucasians, Hawaiian and part-Hawaiians, and mixed non-Hawaiian people. Figures were much lower for Chinese, Japanese, and Korean groups. The at-risk group included a disproportionately higher number of individuals who had been in Hawaii less than 10 years. It is difficult to make sense of the household characteristics of the hidden homeless because the Housing Policy Survey 2006 did not ask respondents to describe the added household members. We note, for instance, that the average household size for the hidden homeless group was 5.2 persons statewide, compared with 3.1 for the at-risk households and 2.9 for all residents. The finding is consistent with the definition of hidden homeless households having more than one family. Hidden homeless households are no less likely than the adequately housed to be living in an owned unit. That is, the hidden homeless survey respondent tends to live in a housing unit that is owned by someone who lives in the unit. This suggests that doubling-up and sharing is more likely to involve an owned housing unit rather than a rented one. At-risk households, by comparison, were much more likely to be housed in rented units (67% compared to 38%). Consistent with these findings, hidden homeless tend to be housed in larger units. Hidden homeless households tend to have more bedrooms and bathrooms. In turn, these units tend to have higher monthly shelter costs. These findings suggest that the hidden homeless tend to be supported by a well-established friend or relative rather than one who is struggling. Hawaii Housing Policy Study,2006: Hidden Homeless and Households at Risk for Homelessness Page 3 ©SMS, Inc. February,2007