http://www.vancouversun.com/news/Housing+First+program+help+homelessness/8996774/story.html

Housing First Website: http://www.raincityhousing.org/what-we-do/hfact/

In many cases, it is bad to have excess inventory, because often, the company is left with unsold, outdated products, that have only costed the company more saving on to, rather than getting them off the shelf and into customers hands.  This is the problem that happened with Blackberry, too much inventory equalled loss of profits and outdated merchandise that had to be written off.

Even though most companies avoid excess inventory/supply, in some rare cases, could extra supply be beneficial? In the rental market, with price ceilings set too low, a shortage in rentals becomes present, resulting in homelessness.  A program called “Housing First” could possibly solve this problem though.  This program helps homeless people who have extra challenges to finding a suitable home for their needs.  These people include the mentally ill, the unemployed, and people who suffer from substance abuse.  This project has an inventory of standard market apartments across Vancouver, as well as support for the people to adjust to their new homes. The program overall, made people feel safer, and  eased their concerns about everything from crime to bedbugs and drugs.

This inventory of homes set aside for people who truly need it is a beneficial and useful strategy, not only to solving homelessness, but to help people get back on their feet and to take responsibility of their lives.  Essentially, this program is a great example of the saying “a hand up, not a hand out.” The housing market and it’s government set price ceilings should really be re-examined.  Is a shortage really beneficial in order to keep prices low to the consumer, or would letting the market fall to it’s market clearing price help free this shortage and allow for inventory to create efficiency, thus helping end homelessness?