The housing crisis and corresponding recession will hit the poorest Americans the hardest. Many families and the most vulnerable citizens—those growing older, those living with disabilities, low-income children, and youth—will fall through the cracks into homelessness. As they struggle to get by, the systems set up to help them are strained beyond measure: state and local budgets are reporting large deficits; foundations are watching their endowments and the stock market; nonprofits are feeling the squeeze as donors tighten their belts; and the federal government is spending taxpayer dollars on bank bailouts and the ongoing wars in Iraq and Afghanistan, leaving little for investing in housing programs. Until recently, some communities were making progress—or at least holding the line—on ending homelessness. Today, the grim economic forecast, along with an across-the-board budget crunch, bodes poorly for these communities and the people they serve.

In 2000, the National Alliance to End Homelessness developed a plan to end homelessness in the United States within 10 years. This plan inspired communities to employ new, research-driven and -supported approaches, including permanent supportive housing and rapid rehousing programs. These strategies, hailed as a significant “paradigm shift” in how communities respond to homelessness, were showing progress—until recently. Today, the economic crisis is making it difficult for communities to keep up with the increased demand for homeless services. Cities across the nation that were once reporting declines in homelessness are reporting increases and requests for emergency assistance, particularly among families.

It has been nearly 10 years since communities embarked on efforts to end homelessness. Today, there are numerous accomplishments to acknowledge, challenges to endure, and new setbacks to overcome. This brief examines the current state of homelessness in America, how community responses are changing, what is working, and, most important, what policymakers should be doing to move forward, not backward.