The researcher of this paper tries to investigate not only causes of modern homelessness that stem from many economic and societal sources, but also analyzes the needs of homeles people and the main factors that play a role in chronic homelessness. The homeless are often portrayed as lazy, uneducated, are addicted to drugs and/or alcohol, unskilled, mentally unstable or a combination of these stereotypical rationales. However, this research paper provides an explanation of this opinion and mentiones the most common factors of homelessness, such as poor paying jobs (under-employment), unemployment, a shortage of inexpensive housing and the lack of public and privately funded services for persons who experience domestic violence, substance abuse and mental illness. This research paper also considers the chronic homelessness issue including why and what type of people become homeless. In conclusion, the researcher states that thanks in large part to recent public perception campaigns by government and private agencies such as the U.S. Department of Housing and Urban Development and National Coalition for the Homeless respectively, long-standing stereotypes of the chronically homeless are slowly evaporating. If these agencies can effectively stop or slow the instances of chronic homelessness prior to persons become this way as well as adjust to the range of challenges facing those presently without a stable home, the objective of abolishing chronic homelessness will be nearer to becoming a reality.