While the twin problems of homelessness and squatting are usually associated with the cities of the Third World, this article examines them in the context of Western postindustrial metropolises. It argues that the growing numbers of homeless and squatters in the United States and Europe reflect not simply the current economic situation, but rather the longer-term changes in economic and demographic structure that have accompanied the transition of such cities from industrial to postindustrial centers. A critical factor contributing to the problem has been shrinkage in the private rental sector, which must be given priority by housing policymakers.
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