It’s time to move on from the Houston Model

Previously published in the Winnipeg Free Press August 1, 2024.

By Shauna MacKinnon

Manitoba politicians are fixated on the “Houston model” as the solution to homelessness.  

The obsession began prior to the recent provincial election when then opposition leader Wab Kinew pointed to the Houston model as the approach his government would take if elected. Since then Houston has seen a trail of Manitoba delegations. In September 2023 Mayor Gillingham and his housing advisor visited Houston. In March 2024 the Winnipeg Free Press sent a reporter and a CBC reporter followed in May 2024. This past week Manitoba’s Housing Minister took a delegation of 26 people to Houston. Houston is celebrated for its success in greatly reducing homelessness, however investigative journalists in the U.S. have revealed the same issues that Manitoba housing advocates have long pointed out having seen the limitations of a similar approach used here.

 What is so special about Houston?

It turns out, not much. Mayor Gillingham reported being impressed “that all organizations work under one plan, with a network of members using a data-sharing system…” Perhaps the Mayor didn’t know that Winnipeg has a similar system. End Homelessness Winnipeg (EHW) was established in 2015 to coordinate the homeless serving sector to end homelessness in 10 years.  The Houston Coalition for the Homeless of Houston (CFTH) may have some useful insights for EHW. But the emphasis on coordination distracts from the more fundamental problem – the lack of housing and supports that require significant government investment. Rather than pointing to the failures of community organizations, governments need to take responsibility. For example, the City of Winnipeg should coordinate with the Province to ensure that new rental housing being developed through programs like the federal Housing Accelerator Fund (HAF) include units, and supports, for the most vulnerable.

Politicians are excited about Houston’s “Housing First” approach. The homeless serving sector in Winnipeg embraced the Housing First model long ago. They have also learned that the model isn’t sustainable if it relies on housing people in the private market with subsidies, as Houston does. Houston’s housing advocates are now learning this too. The CFTH has helped many people access housing with Housing and Urban Development (HUD) department vouchers. Similar to Manitoba’s Rent Assist and the Canada Housing Benefit, HUD’s vouchers provide financial subsidies to cover the gap between what households can afford and market rents. But there are problems. Many without a permanent place to live are not eligible for vouchers. There is also a growing shortage of housing affordable to very low-income households. HUD assisted housing accounts for only 5% of housing stock in Houston and the National Low-Income Housing Coalition shows that Houston ranks second worst in the country with only 19 affordable units for every 100 low-income renter households. Further, 80% of extremely low-income renters are considered “severely cost burdened,” paying more than 50% of income on rent. The lack of affordable private rentals combined with declining social housing is making it difficult to sustain the voucher system that Houston’s model relies on, especially with covid-19 funds expected to dry up. The CFTH estimates homelessness could increase by 60% (5,200 people) by 2026 if they can’t replace these funds and source an additional $35 – $50 million in new annual funding.

Houston is also seeing many people return to homelessness after being housed in private rentals because of weak tenant protections. The city has among the highest rates of eviction in the country. One critical analysis refers to Houston’s market-driven approach as “a shell game with tenants moving from place to place, courtroom to courtroom, and few chances for long-lasting relief.” Some landlords would rather evict tenants than respond to requests for repairs, which means tenants are also prone to live in poor conditions out of fear.

Manitoba has experienced many of these same issues after housing people in private rentals with Rent Assist. We have learned that the only sustainable solution to homelessness is through a comprehensive approach that includes a robust supply of social housing, wrap-around supports, and strong rent and tenant protections. Manitoba’s Right to Housing Coalition carefully researched its comprehensive Social Housing Action Plan which was released in the fall of 2023. The Manitoba government has been well briefed on it and it is making some progress aligned with aspects of the Plan. It needs to do more.

Finland: the gold standard we should aspire to

 A more progressive approach to learn from is Finland’s. It adopted Housing First in 2008. But unlike Houston, it takes a comprehensive approach, combining investment in the supply and maintenance of social housing while providing wrap-around support for tenants. Helsinki, Finland is known across the world for its success in ending homelessness. Its approach is more closely aligned with the Manitoba Social Housing Action Plan and what the Manitoba government has begun to do, albeit on a smaller scale than needed. 

Examining policy solutions in other jurisdictions can be informative, but we need to recognize when they don’t live up to the hype. Manitoba politicians have given the Houston model far more attention than it deserves. The Manitoba government should focus on scaling up its more comprehensive approach by further expanding social housing, increasing investment in community-led supports, expanding tenant protections, and investing in mental health supports and public health measures to support people who use drugs. 

Shauna MacKinnon is Professor and Chair, UWinnipeg Department of Urban and Inner-City Studies