The Economics of Homelessness: A Quantitative Study on Homeless Willingness to Pay for Affordable Housing in Thailand

Abstract

This study investigates the willingness to pay (WTP) for housing among homeless individuals in Thailand, using the contingent valuation method (CVM) and a structured choice experiment model. Data were collected through face-to-face interviews with 90 homeless individuals from Bangkok, Chiang Mai, and Khon Kaen. The study aims to understand the economic value that homeless individuals are willing to pay for various types of homelessness-related housing, as well as the factors influencing their WTP. The findings reveal that while most homeless individuals express a preference for affordable rental housing, their financial capacity remains limited due to low and unstable incomes. The average WTP for affordable housing is 673 THB per month, which is still significantly lower than market rates. This also indicates a clear affordability gap. Regression analysis shows that WTP is significantly influenced by income level, income stability, gender, current living situation, physical health, and access to government welfare programs. Based on these findings, the study recommends reestablishing emergency shelters with a clearly defined short-term intervention role, coordinated with transitional shelters and affordable housing for the homeless. It is hoped that the findings from this research will provide useful insights for the development of targeted policies and financial mechanisms to support homeless people in the Thai context.