Examining homelessness in G ermany: The impact of regional housing market conditions on homelessness in N orth R hine‐ W estphalia, G ermany

This paper proposes a simple model of the housing market and homelessness by taking into consideration both flat size and quality. A critical income ensuring positive housing consumption can be determined. The empirical analysis of districts in N orth R hine‐ W estphalia suggests that conditions on the housing market, income levels and several variables depicting a district's social environment are important drivers of homelessness: high rents and relatively few vacant small flats lead to an increase in homelessness. The condition of vacant flats significantly affects homelessness levels too. Homelessness also increases when the share of those with a very low income is higher, since this makes it more difficult to reach the critical income.