Transitional Housing: What Is It & Why?

Transitional housing has become a growing need in the United States. Housing insecurity stems from a multitude of circumstances and hardships. The government offers subsidies for those who choose to help address this issue. Where there is need, there is opportunity; not only to do good, but also to do well.

Homelessness is an epidemic in America, and the Shared Housing Academy is training entrepreneurs on how to use transitional housing to solve the problem.

There is no quick fix.

However, transitional housing creates a home environment specifically for helping various groups of people transitioning from homelessness to independent lifestyles.

These homes are typically helpful for veterans, post-correctional transition, recovery homes, residential assisted living, and many others.

Shared housing has the potential to solve homelessness, end poverty, improve lives and transform communities nationwide.

How can entrepreneurs make money in the process of helping economically disadvantaged people who are homeless or transitioning?


Determining the specific cause of homelessness is a loaded inquisition because so many factors impact the crisis.

There is a rapidly growing list of circumstances that cause homelessness.

Common Outliers of Homelessness

  1. Extreme poverty
  2. Lack of affordable housing
  3. Decreasing government supports
  4. Domestic violence
  5. Mental and physical disabilities
  6. Substance abuse
  7. Fractured social supports

There is a massive gap between the average median income and the cost of housing in America. Unfortunately, this gap is steadily rising.

As a result, more individuals are vulnerable to becoming homeless every year.

Texas, California, and Florida have the highest numbers of unaccompanied homeless youth under 18, although the problem is nationwide.

Research shows that the typical onset of homelessness starts with one of the following:

  • Lack of a high school diploma or GED
  • Low proficiency in English
  • History of incarceration
  • History of unstable employment

These all contribute to unemployment and eventually result in individual homelessness.

Economic gains funnel to poor urban people at a far slower rate than to the wealthy. Low-income families with limited to no savings and assets can set back an individual’s finances due to minor events.

This economic vulnerability is a significant cause of homelessness.

Transitional Housing, also called Shared Housing, is a cost-effective and affordable form of temporary housing.

Many of these homes also offer services to help residents with stability and productive lifestyles.

The overall goal of transitional housing is to transition residents from the shared housing concept to permanent and affordable housing.

Please do not confuse these homes with emergency shelters. Shared housing benefits independent living with support services.


Transitional housing helps stabilize people’s lives – it is a solution for homelessness that allows entrepreneurs to do good and do well.

Exacerbated risk factors for homeless individuals impact personal vulnerabilities such as:

  • Mental disorders
  • Substance abuse
  • Trauma and violence
  • Domestic violence
  • Justice-system involvement
  • Sudden serious illness
  • Divorce or death of a partner
  • Disabilities

Both transitional housing and temporary shelters help turn around systemic homelessness. They both offer a wide range of assistance.
Help ranges from recovery support services, employment opportunities, and various benefits.

The Difference Between Transitional Housing and Shelters

Emergency shelters serve the needs of people that are economically devastated. Transitional housing typically involves a temporary residence for about 24 months. This supportive housing offers a safe and stable housing environment with voluntary and flexible supports and services.

Providing permanent supportive housing is for people experiencing chronic homelessness.

The longer a person is homeless, the more complex and more expensive it becomes to re-house them.

Quickly getting homeless individuals into housing also connects them with supportive, community-based resources that help them maintain housing.

Practical strategies for preventing homelessness include:

  • Food programs
  • Affordable housing programs
  • Federal and State benefits advocacy
  • Discharge and transitional planning
  • Case management

There are several online resources that provide additional information to help prevent homelessness. For example, The Department of Housing and Urban Development has numerous resources and partnerships that help combat homelessness. But there is so much more that needs to be done to solve this growing problem and therein lies the opportunity for investors.


The Shared Housing Academy is one of the best programs to help entrepreneurs start transitional housing. These expert instructors are teaching students how to own and operate shared housing real estate.

With 70 million Americans facing housing challenges, they provide a roadmap to help students through the process of purchasing a home, gaining certification, helping marginalized people.

Visit to learn how to register for the next training course to learn everything from A-Z about transitional housing.

Discover How to Fund Your Freedom with 4 Single-Family Homes

Get your pad and pen ready! Learn what Shared Housing is, how it compares to other real estate deals, how you can be involved, and how you can help the 70 million people in the United States facing housing insecurity.

We want to share our Shared Housing 101 presentation with you to help you discover how you can play a role in this impact investing opportunity.