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If you want to understand the origins and solutions of the American homelessness problem, a really important starting point is to understand that the problem mostly exists in places where *there are lots of jobs and the labor market is really strong,* not in economically depressed areas.
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It's not a problem of a weak economy - the economy being strong in these areas makes it *worse* by increasing local jobs without adding homes - the problem is housing supply, particularly supply in a handful of extremely expensive metro areas like Los Angeles that build virtually no new housing.
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It also seems like the people who can afford to move in turn into NIMBY reactionaries because they don't want to see poverty around their very expensive new house *and* don't want to see their property values decrease so the only solution is disciplining the unhoused.