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Original Articles

Financial landscape of recovery housing in the United States

, MSORCID Icon, , DrPH, MPHORCID Icon, , MD, , BS & , MSW, ACSW
 

Abstract

Objectives:

Recovery housing provides substance-free living environments that use peer-support to empower individuals in recovery from substance use disorder. This study estimated the total revenue of the recovery housing industry from recovery houses, nationwide.

Methods:

Using survey data collected in June and July of 2020, we calculate the total revenue of the recovery housing industry and determine the share of revenue that comes from different sources for rural and nonrural houses.

Results:

We find that individual recovery houses operate with an annual revenue of $250,000 and the whole industry accounts for $4.5 billion annually. COVID-19 has reduced industry revenue by 4%. Rural and nonrural houses differ significantly in their sources of revenue.

Conclusions:

Our results suggest that COVID-19 reduced the size of the recovery housing industry. Houses in nonrural regions may need more federal support due to the relatively high reliance on resident fees, which may be unreliable during COVID-19.

Acknowledgments

Dave Sheridan, Jason Paul Jarreau, Kathleen Gibson, Paul Molloy, Danielle Gray, Terry Bunn, and Tyler Jennings provided feedback and facilitated distribution.

Conflicting and competing interests

The authors have no potential conflicts of interest or financial disclosures.

Funding

This publication was supported by a Health Resources and Services Administration (HRSA) grant, award number UD9RH33631-01-00. Its contents are solely the responsibility of the authors and do not necessarily represent the official views of HRSA.

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