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>According to research, the problem is rising housing prices, not compassion

While this might be true for the homeless population as a whole, I suspect the parent is talking about the people with mental illness and/or substance abuse problems. Making rent 20% cheaper or whatever isn't going to magically make them get better.

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These things are interlinked. Developing addiction or mental health issues makes you less able to keep an income. If housing is more expensive it's then that much easier to not be able to make rent. And if you're homeless then it's quite easy to develop drug addictions or mental health issues. Housing prices are a single dial that turns up the heat on the whole system.

Honestly we don't have to intellectualize this very much. A child can understand this. If housing is more expensive it will be harder for people to afford it! And people who can't afford housing become homeless!

Actually, from experts I've read, the best first step is stable housing. It's hard for me, with all my resources and normal functioning, to change my life; I couldn't imagine doing it while living on the street, wondering where my next meal and shelter are coming from. These people add other obstacles to what I face.

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