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Cash is an effective tool to help families afford the ever-rising cost of housing. Research shows that when presented with additional cash in their family budgets, families often use it to pay their rent or mortgage. When effectively paired with other supports, cash has been shown to help people move out of homelessness and into stable housing.
What is a Guaranteed Income? It’s cash for families who need it most. The cash is:
- Unconditional: There are no hoops families must jump through in order to qualify.
- Unrestricted: Families can spend the money however they need.
- Regular: Payments happen regularly to help families with rent, groceries, and other frequent expenses.
What the research shows:
Cash keeps families stable and housed
Data collected during the pandemic reveal how families used stimulus payments and the expanded monthly Child Tax Credit. In the months following the passage of relief bills, the share of households behind on their housing payments declined.[1]
Participants in guaranteed income pilots report improved housing outcomes. For example, mothers in the Marin County MOMentum program reported having more stable housing, being less stressed about their housing, and in many cases being able to move to better living situations.[2]
Still, systemic barriers persist that prevent cash from being a panacea when addressing the housing crisis. For example, the Chicago Future Fund, a basic income pilot for individuals exiting incarceration found cash improved housing stability for some, but overcoming the barriers to secure housing for individuals with felony convictions proved difficult.[3]
Cash is a vital tool for addressing homelessness
Research shows cash can be an effective tool to move people out of homelessness and into stable housing. In an evaluation of the first year of the Denver Basic Income Project, a pilot project for individuals experiencing homelessness, researchers found nearly half of recipients residing in their own home, and a significant reduction in individuals spending nights in the streets.[4] In Vancouver, British Columbia, a study compared a control group to a group receiving a one-time cash transfer of $7,500. The people receiving cash moved into stable housing more quickly, were homeless for fewer days, and used the shelter system less.[5]
A guaranteed income would improve housing outcomes for Oregonians
Cash is an effective tool for helping families afford their basic needs. Research shows that when given additional cash in their budgets, families often use it to pay their rent or mortgage. A guaranteed income would help all Oregonians maintain stable housing.
Endnotes
[1] Cooney, Patrick and H. Luke Shaefer, Material Hardship and Mental Health Following the COVID-19 Relief Bill and American Rescue Plan Act.
[2] Yoshida, Sallie, Renatta DeFever, and Sergio Martinez, MOMentum: Marin Guaranteed Income Demonstration Project Evaluation Findings.
[3] Baber, Ashley, Chicago Future Fund: The Impact of Guaranteed Basic Income on the Lives of Post-incarceration Individuals.
[4] Daniel Brisson, et al., Denver Basic Income Project: Year One Evaluation Report.
[5] Foundations for Social Change, Taking Bold Action on Homelessness.
