Opinion | Ending homelessness requires investing in what works

Michigan’s housing crisis is no longer hypothetical: it is here. Rents have risen by more than 25% in recent years, while wages have stagnated, and the cost of necessities like food, gas and electricity is skyrocketing. This perfect storm is pushing more households to the brink. Seniors, veterans and young people are particularly hard hit.

A man smiling, with a fieldstone wall in background. — Eric Hufnagel is the CEO of the Michigan Coalition Against Homelessness. (Courtesy photo)

The question is not whether we can afford to act. It is whether we can afford not to.

Michigan has a system designed to address homelessness: local Continuums of Care (CoCs). These coordinated networks align service agencies and housing providers to help people quickly exit homelessness and stay housed.

The CoC system locally allocates roughly $108 million in federal funding received through the Department of Housing and Urban Development (HUD). But funding uncertainty remains high due to changes in the service philosophy. Even before the changes at HUD, the system was struggling with an investment of less than $4,000,000 in State dollars in services. Now federal uncertainty means that the state must invest in supporting our neighbors hit hard by the housing crisis.

A proposed $30 million commitment would stabilize and strengthen the system at a critical moment.

This commitment would also support what we know works. The funding would go to support evidence-based strategies, the Housing First model, trauma-informed care and person-centered services. These strategies, when fully funded, have consistently reduced homelessness and improved long-term stability. Two key strategies stand out: Permanent Supportive Housing, which pairs housing with services for those with the greatest needs, and Rapid Re-Housing, which helps households quickly return to stable housing with short-term support.

These approaches not only reduce the time people spend homeless but also lower public costs tied to emergency services and institutional care. A comprehensive response also includes street outreach, meeting people where they are and connecting those living unsheltered to housing and services. Without it, some of our most vulnerable neighbors remain disconnected from help. And behind it all, strong data systems ensure accountability, coordination, and smarter policy decisions.

Equally important is prevention of homelessness before it starts. Short-term financial assistance, legal support, and mediation can prevent evictions and keep families in their homes.

For many households living paycheck to paycheck, this kind of support is the difference between stability and crisis.

Critically, investing in homelessness response is not just compassionate; it is fiscally responsible. Stable housing reduces reliance on emergency rooms, shelters and law enforcement, saving taxpayer dollars in the long run.

Michigan has the tools and expertise to address homelessness. What it needs now is sustained investment. A $30 million commitment would expand housing assistance, prevent evictions, and strengthen a system that is already delivering positive results.

Ending homelessness is not a distant aspiration. It is an achievable goal; If the State Legislature chooses to invest in people’s lives and focus on our ability to alleviate and even prevent the trauma and upheaval experienced by families, veterans, older adults and you who are at risk of homelessness

If you would like to make your voice heard on this issue, contact your member of the State Legislature at https://www.legislature.mi.gov/