Rethinking homelessness policy as current programs struggle to deliver results
NEW YORK, NY – Homelessness in the United States has reached an all-time high, despite unprecedented investment in Permanent Supportive Housing (PSH), which has become the government’s primary response to homelessness.
In a new report, Manhattan Institute senior fellow Stephen Eide warns that the current PSH approach, guided by the “Housing First” philosophy, is faltering and in need of reassessment. Eide examines the growing limitations of PSH, which combines long-term rental assistance with voluntary social services for chronically homeless individuals. Over the past decade, PSH capacity has increased by 25%, yet homelessness continues to grow.
Eide argues that PSH is under mounting financial, operational, and political strain. Aging infrastructure, rising maintenance costs, limited scalability, and growing community opposition present new obstacles to this model, while federal rules continue to restrict supportive housing providers’ ability to respond effectively.
Rather than abandon PSH entirely, Eide proposes strengthening and consolidating existing programs. His key recommendations include:
- Decouple PSH and Housing First models by giving service providers greater flexibility.
- Invest in temporary housing to ease pressure on PSH and reduce unsheltered homelessness.
- Create housing-focused treatment courts to improve tenant outcomes and address behavioral issues.
- Transfer high-needs PSH tenants to behavioral health or other specialized systems better equipped to support them.
Click here to read the full report.
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