Housing Crisis Deepens as Working Families Face Homelessness Despite Employment

Kirsten Elliott, CEO and president of Community Housing Network (CHN), brings over two decades of experience addressing housing insecurity in Michigan, where her organization has managed over $120 million in funding and developed nearly 1,000 affordable housing units. Elliott's work comes at a critical time when housing affordability has reached crisis levels, with no county or state in the U.S. where a full-time minimum-wage worker can afford a modest one-bedroom apartment without working 86 hours per week.

The housing crisis extends beyond visible homelessness to include what Elliott describes as the 'hidden homeless' population. These individuals and families may be couch-surfing, living in cars or motels, or fleeing domestic violence, but they're excluded from official definitions of homelessness and therefore don't qualify for housing services. The 2024 'Point In Time' homeless count found more than 770,000 people experiencing homelessness on a single night in January, representing an 18% increase from 2023, but experts agree this significantly undercounts the true scale of the problem.

A 2017 study by the National Law Center on Homelessness & Poverty estimated that the actual homeless population could be anywhere from 2.5 to 10 times higher than the Point-In-Time Count total. Elliott emphasizes that as many as 60% of people experiencing homelessness have jobs, demonstrating that employment alone no longer protects families from housing instability. Wages haven't kept up with housing costs, creating a situation where working families increasingly struggle to maintain housing.

In Michigan specifically, research by United Way shows that 42% of households struggle to meet basic needs, with a family of four now requiring $90,096 annually to maintain housing while covering other essential expenses. This creates particular urgency in a state where the median household income is $71,000, forcing many families to dedicate more than 50% of their income just to cover rent.

Federal support systems are facing significant challenges, with Elliott noting concerns about proposed budget cuts to affordable housing programs. While HUD's budget was $72.6 billion heading into 2025, this only provides benefits to 25% of people who need housing support. The most recent White House budget proposed a 44% cut to affordable housing, homelessness and community development programs, which Elliott warns will have catastrophic impacts when combined with cuts to Medicaid and SNAP assistance.

Elliott identifies zoning laws as a serious impediment to affordable housing solutions, with 'not in my backyard' attitudes preventing the development of necessary housing infrastructure. The lack of public or affordable transportation in Southeast Michigan creates additional barriers to employment and housing stability. She advocates for increased investment from both private and public sectors to bridge the growing housing affordability gap that threatens to displace more families and disrupt communities.

The most effective interventions, according to Elliott, focus on prevention rather than reaction. Preventing evictions before they occur saves families from the trauma of homelessness and the practical challenges of losing belongings and starting over. With proper investment and policy changes, communities can build stronger foundations where residents can support themselves and contribute to thriving neighborhoods.