Americans Swap Homes for Hotels as Recession Bites

July 12th, 2009

Via: Reuters:

In many cities, foreclosures are a big part of a spike in homeless and rise in families living in hotels or motels.

Nearly 80 percent of homeless services providers and advocacy agencies say at least some clients became homeless as a result of a foreclosure, according to a joint report by four of the largest U.S. homeless advocacy groups.

Staying with family or friends and in emergency shelters were the most common post-foreclosure living conditions, followed by hotels or motels, according to the June report.

“In many areas shelters are now completely full, so the only option to keep their families together is to rent a motel room for $200 a week. That’s pretty standard for many who lost their homes to foreclosure,” said Michael Stoops, executive director of the National Coalition for the Homeless.

Unlike Massachusetts, most states do not pick up the tab. “People are spending 80 percent of their total income on hotels,” he said. “And food costs are higher because they can’t cook.”

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