Evidence for Cash as a Solution in NYC
Our research with Chapin Hall confirms that direct cash transfers are a powerful, evidence-based tool to prevent and end youth homelessness.
Point Source Youth and Chapin Hall have released the initial results of the NYC Pathways Study, a groundbreaking look at how direct cash transfers can transform the lives of young people experiencing homelessness. The study tested whether regular, unconditional cash paired with optional, youth-driven support helps young adults secure stable housing faster than traditional services like shelters or temporary housing.
Study Background
Point Source Youth engaged with Chapin Hall, a Chicago-based policy research center, to design and track one of our pilot direct cash transfers programs – the Trust Youth Initiative. The NYC-based program launched in June 2021.
We aimed to compare the outcomes of youth who had access to direct cash transfers with youth who accessed standard homelessness services. While direct cash transfers are being increasingly implemented across the country, few programs have been evaluated and no long-term studies have looked at how young adults exit homelessness.
We wanted to understand how well direct cash transfers helped young adults find stable housing compared with legacy homelessness interventions and uncover ways we might improve how direct cash transfers work for maximum effect. We titled the resulting research "NYC Pathways Study”.
Our work with Chapin Hall began during the program design phase. We engaged young adults with lived experience of homelessness to codesign the cash plus program for youth experiencing homelessness. The program was developed from the codesign process to provide unconditional cash along with the option of complementary supportive services.
Study Design
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78 young adults, ages 18 to 24, were enrolled in March 2022 from NYC Department of Homeless Services shelters and Department of Youth and Community Development youth drop-in centers to better understand their experiences with the homelessness response system and how they use different services and programs to exit homelessness.
All participants had no untreated substance use or mental health problems.
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Young adults who enrolled in the Trust Youth Initiative received $1,100 per month for 24 months and a one-time lump sum payment of $3,000 that could be accessed any time during the 24-month period to cover a large expense, such as putting down a security deposit.
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In addition to the cash, youth were eligible for optional supportive services designed to help participants achieve their housing, employment, education, and other personal goals.
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The study focused on three target areas: housing, food security and financial well-being.
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The findings were pulled from survey data collected at the Trust Youth Initiative launch and at 6, 12, 24, and 30 months post enrollment.
Findings
92%
of young adults agreed that the cash helped them find safe and stable housing, and 90% said it supported them in achieving their goals.
95%
of young adults agreed that cash payments improved their life circumstances.
Young Adults Reported that Cash Improved Their Life Circumstances at 24 Months
Young adults participating in the Trust Youth Initiative experienced a reduction in homelessness and an increase in housing stability from the program launch to 6 months after the end of the program.
The Percentage of Young Adults Experiencing Homelessness
Young adults enrolled in the Trust Youth Initiative were consistently more food-secure than young adults receiving services as usual, perhaps due to no longer having to choose between buying groceries and paying rent and bills.
Young adults enrolled in the cash plus program were more likely to have savings and save more than young adults receiving services as usual. Additionally, 97% of Trust Youth Initiative respondents reported being more able to focus on education, work training and employment, contradicting the notion that individuals receiving direct cash are less likely to pursue employment or upskilling opportunities.
Conclusion
These preliminary findings show exciting promise for the efficacy and cost savings of direct cash transfers when compared with services as usual. In New York City, young people wait an average of 43 days in crisis programs and 370 days in DHS shelters before finding stable housing (NYC Mayor’s Office of Operations, 2024). That’s a long and costly journey.
The NYC Pathways Study shows that regular cash transfers, paired with a one-time larger payment, met immediate needs and gave young people financial security. However, the payments may not have been enough to keep up with New York’s soaring housing costs like rent and utilities.
More research is also needed to produce results with larger sample sizes to create statistically significant results. We will continue tracking future programs with larger sample sizes to reinforce these findings as we continue to partner and evaluate direct cash transfers with supportive programing in additional geographies and will share additional results that build on this initial evidence base.
Resources
Executive Summary
Press Release