Homelessness is a manifestation of acute poverty accompanied by long-term unemployment, deficient human capital, problems with substance abuse, inadequate welfare benefits, and other vulnerabilities. Homeless people have problems that require sustained intervention strategies that will permit them the opportunity to enter the labor market, maintain permanent housing, remain healthy and functional, and take care of their families. To this end, more and more transitional housing programs have been opened—programs that provide shelter stays of longer duration than emergency shelters as well as an array of support services designed to help people move along the path toward economic independence. Do people do better after living in transitional housing?

To address this question, this research monitored homeless families who graduated from a large transitional housing program in Baltimore. Following two cohorts of families for more than one year at several points in time, this research finds that families exhibited a series of positive changes in the lives of both adults as well as children. Families did not become economically self-sufficient as indicated by complete independence from income maintenance programs. This study suggests that the availability of income maintenance programs, particularly rental housing subsidies may be a critical factor in permitting homeless people to stabilize their life situations.