Since early 2007, the subprime crisis has highlighted the need to limit homelessness
Los Angeles, CA (PRWEB) March 26, 2012
While the recession traumatized the US economy and caused great concern for most industries, the subprime loan crisis that preceded it drove a boom in funding for the Community Housing and Homeless Shelters industry. According to IBISWorld industry analyst Eben Jose, "The following credit freeze and spike in unemployment left many people homeless or in need of temporary housing." The sharp, unprecedented increase in home vacancies caused the government to greatly increase funding for community and homeless housing projects. As a result, the industry experienced strong growth during the worst of the recession, with revenue increasing 8.1% and 11.2% in 2008 and 2009, respectively. A clear correlation exists between empty homes and people in need of emergency housing. As a result, demand for industry services has increased since 2007. Industry revenue (funded predominantly by the government) is set to increase in the five years to 2012. In 2012, though, industry revenue growth is expected to slow, reflecting the economy’s measured recovery.
Philanthropic groups like this industry's operators often rely heavily on volunteer labor. As such, pay rates are quite low, despite most groups being large enough to fund hospice management and other forms of housing. In the five years to 2012, employment is expected to increase slowly mainly due to the lack of monetary incentives. "On the other hand," says Jose, "the number of enterprises is expected to increase during the same period, which represents heightened concern over the growing number of distressed and homeless people." The Community Housing and Homeless Shelters industry is very fragmented, with no single player accounting for a significant share of the industry’s revenue. The Department of Housing and Urban Development (HUD) distributes federal funding among the industry’s various shelters and organizations.
As the US economy continues to recover and more Americans find jobs and permanent housing, industry funding will slow after the robust increases of the past five years. In 2013, industry revenue is expected to increase only moderately because federal, state and local governments, faced with the need to balance budgets, will likely limit funding increases. Through 2017, industry revenue is forecast to increase at a marginal average annual rate. As a result of decreased funding, the growth rates of both enterprises and establishments are also forecast to slow. For more information, visit IBISWorld’s Community Housing & Homeless Shelters report in the US industry page.
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IBISWorld industry Report Key Topics
Establishments in this industry provide a variety of community housing services, including short-term emergency shelter for victims of domestic violence, sexual assault or child abuse, in addition to temporary residential shelter for the homeless, runaway youths and parents and families caught in medical crises.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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