That would be the most naive interpretation of the relationship - what if, for example, the invisible homeless also burden charities and other support systems in a way that leads to more visible homelessness? What if, given that high prices are a sign of lack of supply, visible homelessness is just a symptom of lack of construction in the county?

"Suppose the house price drops" is a very non-specific hypothetical. Why would the house price drop, and what impact could that have on homelessness?

I think "linked" is probably the right term. It's certainly a spectrum of people with issues (substance abuse, mental health, opportunity, bad luck).

A drop in housing prices doesn't immediately fix any of those things, but it unlocks some options. Looking at Zillow, rent of a 1 bedroom unit is around $2000/mo (put another way, that's 100% of the income of a person working at minimum wage), that's just an impossible situation.

If housing prices come down, rents come down, the most functional 1/3 of the homeless population gets off the street, resources can be applied to the more difficult cases, etc.

> Are they really? An honest question

Not an economist. But many of us perceive that in the US today the middle class is contracting. A few people from that class may migrate to the upper class-- good for them-- but probably the overwhelming majority of folks migrate downwards.

So if OP means that in a context where there is a lot of quite expensive real estate you would expect also to find a good number of people who are so marginalized that they are living in their cars or on the streets, then yes, they are linked.

Obviously people with no real income will not be rushing out to buy houses... however, lowering home prices would help prevent people from becoming homeless in the first place. If you only have to manage to pay for a $100,000 home, it's going to be much easier to keep those payments up.

For those already homeless, special assistance will be required to get them back into "moneyed" society. However, a lower entry point to homeownership would make this assistance less costly.

You understand rent would also go down too right?

If housing prices nosedive, so does rent. Not everyone in a tent encampment needs to be a buyer.