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A Short History · United States

How Modern Homelessness Was Made

People have always fallen into poverty. But the mass, visible homelessness we know today is not ancient and not inevitable. It was assembled over roughly fifty years by specific decisions about housing, hospitals, and budgets, which is precisely why it can be reversed.

Before the modern era

The word "homeless" is old; it entered American use in the 1870s to describe itinerant "tramps" looking for work, and the conversation was about character and morality, not housing.

For the next century, homelessness rose and fell with the economy. It spiked in the Great Depression, then World War II and the postwar boom pulled it back toward a baseline. It was mostly explained as a matter of personal character, and researchers saw life on Skid Row as relatively permanent.

The old homelessness was cyclical and reversible. What replaced it after 1980 was structural, and it never fell back to the old level.

ACT I The safety net is dismantled

Long before homelessness made headlines, the housing of last resort was being demolished, deliberately. The country's mental hospitals were emptied, and many of the people who left them landed in that same cheap housing.

1950s–1970s

Urban renewal razes Skid Row

"Slum clearance" and downtown redevelopment demolished the single-room-occupancy (SRO) hotels that housed the poorest urban residents for a few dollars a night. New York City caused the loss of more than 100,000 SRO units by 1985, and a city tax program meant to encourage converting SRO units into higher-rent apartments eliminated nearly two-thirds of the remaining SRO stock between 1976 and 1981 alone, according to a State Assembly study.

1965–1979

Deinstitutionalization, without most of the promised care

State psychiatric hospitals released hundreds of thousands of patients. In New York, the state psychiatric-center population fell from about 85,000 to 27,000 between 1965 and 1979, but the community housing and care that were supposed to replace the hospitals were mostly never built.

1970
First warning in print

Newspapers report an "SRO crisis"

The press was already documenting the disappearing housing, under the old vocabulary. Between 1970 and 1982, about 1.1 million single-room units, nearly half the national stock, disappeared.

1979

A "nationwide crisis," on the record

A U.S. General Accounting Office study called the lack of affordable rental housing a "nationwide crisis" affecting "millions of Americans." The same year, the Callahan v. Carey lawsuit was filed in New York on behalf of homeless men.

ACT II The "new homelessness" erupts

As federal housing dollars were cut and recession hit, a different kind of homelessness appeared. Families, women, younger and more diverse people became homeless, and many slept in the open rather than in flophouses. Suddenly it was front-page news.

Mar1981
Front page

"Help Is Urged for 36,000 Homeless in City's Streets"

A page-one New York Times article publicized early field research by Ellen Baxter and Kim Hopper, one of the first times the modern scale of street homelessness was quantified for a mass audience.

1981

A legal "right to shelter"

The Callahan consent decree required New York City to provide shelter to homeless men: the first such guarantee in any U.S. city, and an early signal that homelessness was now a permanent government concern.

Winter1981–82

A death that changed the story

Rebecca Smith, 61, a former college valedictorian who had lived with schizophrenia, froze to death in a cardboard shelter on a New York street. Her death became a front-page story and helped fix the image of a "new," more diverse homeless population in the public mind.

1982

Declared a national crisis

Grassroots activists, big-city mayors, and members of Congress began insisting homelessness was a national emergency. The National Coalition for the Homeless was organized this year. (The Reagan administration stayed publicly silent on the issue until 1984.)

1980s
The money behind it

Federal housing support is cut by more than half

Budget authority for subsidized housing peaked at about $82 billion in 1978 (in constant dollars) and was cut by more than half in the early 1980s, even as the recession and stagnant wages pushed more families to the edge.

1987
Peak attention

Coverage peaks; the first major federal law arrives

National news coverage of homelessness hit its high point. Congress passed the Stewart B. McKinney Act, the first major federal homeless-assistance law, treating the crisis, at last, as a federal responsibility.

When America started paying attention

Schematic of news coverage volume, illustrative of the documented trend, not exact article counts.

Peak · 1987 1975 1980 1985 1992 low
WHY What actually caused it

The popular story blamed individuals: addiction, mental illness, "bad choices." The structural story explains the timing: why so many people, all at once, in the 1980s. The roots are about housing and money. The rest compounded an already-collapsing foundation.

Root causes (structural)

Affordable housing collapsed
Demolition of SROs and cheap rentals erased the housing of last resort.
Federal funding was slashed
Money committed to subsidized housing fell about four-fifths from 1978 to 1989.
Wages stalled; recession hit
Real wages stagnated while rents and home prices climbed.
Gentrification & displacement
Redevelopment converted low-cost units into condos and offices.

Compounding factors

Deinstitutionalization without support
Hospitals emptied, but most of the promised community care never arrived.
The HIV/AIDS epidemic
Illness, lost income, and discrimination pushed more people onto the street.
Research that focused on individuals
Early federally funded studies focused on mental illness and addiction, reinforcing the idea that homelessness was a personal failing rather than a housing failure.
The point

A problem built by policy can be unbuilt by policy.

Modern homelessness is about fifty years old. It began when we tore down the cheap housing, cut the budgets, and emptied the hospitals, not because some people are permanently destined for the street.

That history is the most hopeful fact about it. The same choice that created the crisis, what we choose to fund and build, is the choice that ends it. Communities that have rebuilt that housing have driven their numbers down. Homelessness is not a fixed feature of our neighbors' character. It's a condition we made, and one we can choose to undo.

Sources & notes

Compiled from: Institute of Medicine / National Academies, Homelessness, Health, and Human Needs; M. M. Jones, "Creating a Science of Homelessness During the Reagan Era," The Milbank Quarterly (2015); Buck, Toro & Ramos coverage analysis (2004) and related media-content studies; U.S. General Accounting Office (1979); National Coalition for the Homeless historical materials; NLIHC / Cushing Dolbeare, Changing Priorities (2002) for federal housing budget authority (constant 2002 dollars); B. J. Sullivan and J. Burke, "Single-Room Occupancy Housing in New York City: The Origins and Dimensions of a Crisis," CUNY Law Review (2013) for New York City's SRO losses; Hopper and Hamberg, as reported in Dennis Culhane, "Chapter One: The Literature on Homelessness," for the national loss of single-room units from 1970 to 1982; and contemporaneous reporting referenced therein.

Figures are drawn from scholarly and secondary sources and are presented as historical estimates; the coverage chart is a schematic of described trends, not a count of articles. Specific newspaper articles cited (e.g., the March 1981 New York Times front page) are referenced via secondary scholarship rather than verified in the original newspaper archives. If you find an error, please tell me and I will correct it.

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