BuyerWill is exactly correct. There is no reason for a collapse in home prices to create any net increase in homelessness. If all home prices dropped by 90% tomorrow, there would be exactly the same number of houses as there are today. All that would happen is that people would pay different amounts to live in them, and maybe some people would buy more houses (investors), and others would rent more (residents-to-be without downpayments).
