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sheltered homeless people in numerous categories for 2007 and 2008 and are intended to<br />

supplement the information provided in the body of the report.<br />

1.4 Trends in Homelessness and the Economic Crisis<br />

This first year-to-year comparison of HMIS <strong>data</strong> on sheltered homelessness is of particular<br />

interest because of the economic and foreclosure crisis that began in December 2007.<br />

Changes across the two years provide an early glimpse at the effect of the recession on<br />

homelessness, but the full effect of the economic and foreclosure crisis has yet to be observed<br />

in the AHAR. The <strong>data</strong> collection period for the 2008 AHAR ended on September 30, 2008,<br />

just as the crisis was accelerating, yet the impact of the crisis continues to unfold throughout<br />

the United States. Also, as suggested in this report as well as in other studies, people who are<br />

in jeopardy of losing their homes due to unemployment or foreclosure typically rely on other<br />

housing options before resorting to the shelter system. For example, people often stay with<br />

family and friends until they either regain their financial footing, move to another location, or<br />

become homeless.<br />

Both PIT and HMIS <strong>data</strong> show that, while homelessness remains predominately an urban<br />

phenomenon and most people are homeless as individuals rather than as members of<br />

families, homelessness became more common among families between 2007 and 2008. This<br />

shift is probably related to the economic crisis, although it is unknown if it will persist.<br />

The <strong>data</strong> also show that, in spite of the economic crisis, there was a decline in homelessness<br />

in urban areas (defined as principal cities of metropolitan areas). This drop may reflect<br />

progress communities were making in ending chronic homelessness before the economic<br />

downturn. Chronic homelessness refers to individuals who have experienced repeated<br />

episodes of homelessness or have been homeless for several years. Ending chronic<br />

homelessness has been a national policy objective that has been supported by significant<br />

investments in developing permanent supportive housing. For several years communities<br />

have reported declines in the number of persons experiencing chronic homelessness.<br />

Introduction 5

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