Cities report that addiction is a major cause of homelessness. While low wages contribute to homelessness, unemployment is also an important factor. The causes of unemployment vary and some countries have higher rates than others. Once a person is unemployed for a while, they can easily fall into destitution.
Research shows that most homeless people want to work, but face obstacles, such as not having a permanent address. On a global scale, poverty is one of the most important root causes of homelessness. Stagnant wages, unemployment, and the high costs of housing and health care contribute to poverty. Not being able to afford essential items such as housing, food, education and more greatly increases the risk for an individual or family.
To effectively address homelessness, governments and organizations must address poverty. The fact that a society fails to address racial inequalities, increases wages and provides affordable housing also contributes to homelessness rates. In the United States, racial minorities are becoming homeless at a higher rate than whites. Even for those who remain, the price of domestic violence makes them more vulnerable to becoming homeless in the future.