Original Source Date: March 13, 2019
Impact Highlights
| Annual ROI | Time Horizon | Confidence |
|---|---|---|
| 250.0% | 1.0 years | 4 - Weak |
| Activities | Outcomes | Indicators |
|---|---|---|
| Employment, Housing / Shelter | Opportunity, Safety / Support, Shelter | Homelessness, Poverty, Unemployment |
| Geography | Demographics |
|---|---|
| Massachusetts, Mideast, New England, New York, United States | All |
Article Details
Homelessness remains a pressing issue in many urban centers, exacerbated by economic downturns and a lack of affordable housing. Addressing this challenge requires a comprehensive approach that combines stable housing with employment opportunities. The Jericho Project, a nonprofit organization, exemplifies this two-pronged strategy to help individuals reclaim their lives.
The Interconnection of Housing and Employment
Loss of employment can lead to financial instability, making it difficult for individuals to afford housing. Conversely, lacking a stable residence can hinder one’s ability to secure and maintain a job. Recognizing this cyclical relationship, the Jericho Project emphasizes both supportive housing and employment programs. By providing affordable, furnished studios through public-private partnerships, individuals gain a sense of dignity and stability. This foundation enables them to engage in job training and mentorship programs, fostering long-term self-sufficiency.
Calculating the Return on Investment (ROI)
Investing in supportive housing and employment initiatives yields significant economic benefits. For instance, Pathways to Housing PA, a similar organization, reports that a $10,000 investment houses a person for a year, while $1,000 covers a year’s worth of transportation.
The ROI becomes clear when considering the cost savings in emergency services, hospitalizations, shelters, and law enforcement, which can amount to over $35,000 per person annually. By replacing those public costs with a $10,000/year investment in supportive housing, governments and funders can generate a 250% annual ROI.
Annual ROI Calculation:
Annual cost of homelessness-related public services per person: ~$35,000
Annual cost of supportive housing per person: ~$10,000
Savings per person annually: ~$25,000
ROI = (Savings ÷ Investment) × 100 = ($25,000 ÷ $10,000) × 100 = 250%
This means for every $1 invested, $2.50 is saved—often recouping the full investment in just 12 months.
Studies also show that supportive housing programs achieve retention rates of 85–90%, further validating long-term success and cost efficiency.
Social Impact and Community Benefits
Beyond financial gains, the social return is equally compelling. Individuals who were once homeless regain self-esteem, stability, and hope. With a roof over their heads and a path to employment, their mental and physical health improves. Communities see a reduction in crime rates, hospital visits, and emergency interventions, while gaining productive, contributing residents.
The Jericho Project not only transforms individual lives—it strengthens neighborhoods, reduces public burden, and creates a sustainable pathway out of poverty.
Conclusion
Tackling homelessness requires more than temporary shelter—it demands a dual focus on housing and opportunity. The Jericho Project’s model proves that a modest investment can yield a powerful financial and social return. A 250% annual ROI, combined with profound human impact, makes this strategy one of the most effective tools we have in ending chronic homelessness.
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