When we think about the causes of substance abuse and addiction, the ones most likely to come to mind are recreation, peer pressure, mental health struggles, and physical pain. While these are all extremely common factors leading to substance use disorder (SUD), other factors like income level, family background, and access to healthcare and educational resources can also increase someone’s risk of substance abuse or addiction.
People living in poverty or unstable housing situations often experience chronic stress and anxiety. Combined with an absence of coping skills, limited access to healthcare resources, and the stigma of addiction, the risk of developing an SUD can feel overwhelming. Understanding socioeconomic factors is crucial to building a more empathetic, effective approach to treatment, one that takes into account the broader context of their lives.
What Are Socioeconomic Factors?
Socioeconomic factors, or SES factors for short, are the social and economic forces that shape people’s lives. SES factors include one’s education level, income, employment status, and neighborhood environment. These factors reflect the interaction between a person’s finances and the quality of their lives, including health outcomes and vulnerability to addiction.
Among SES factors that contribute to one’s risk of developing an addiction, the following all play a significant role:
- Poverty (and homelessness)
- Family socioeconomic status (SES)
- Social Stigma
Poverty and Substance Abuse
The federal government defines poverty based on family size and income. If an individual or family’s total income falls under the poverty threshold set by the government, that individual or family is considered impoverished.1 The official poverty measure is adjusted annually to account for inflation, but in 2024 the U.S. poverty threshold for a single person was $15,060. For a family of four, it was $31,200.2
While poverty alone does not automatically lead to substance abuse, it can be a major contributing factor. The low income, unstable employment situation, and lower education levels that make up life below the poverty threshold tend to cause stress. This can easily lead to substance abuse, as people living in poverty might seek a cheap and readily available means of escaping their stress.3 In this way, poverty and drug abuse are a common and often fatal combination.
Homelessness & Addiction
Homelessness and drug addiction are deeply and complexly intertwined, sometimes feeding off each other and sometimes reinforcing each other.
Of course, substance abuse can contribute to homelessness by draining the user’s financial resources and straining their relationships. But life on the streets can intensify one’s addiction, as people struggle with trauma, stress, and limited access to support.
For those without stable housing, essential needs like food and shelter tend to take precedence over getting help for addiction. Meanwhile, mental health disorders frequently overlap with both SUD and homelessness, which further complicates the situation and makes recovery more difficult. The scarce availability of addiction treatment sources is also an issue for homeless people.4
Family Socioeconomic Status (SES) & Addiction
Family Socioeconomic Status (SES) refers to the social and economic standing of a family. This is measured through a combination of income, education level, the availability of community resources, and occupational status. In other words, family SES reflects the broader environment in which a child or young adult is raised.5
Research suggests that low family SES is linked to a higher risk of developing a substance use disorder (SUD) in young adulthood. Lower family SES can mean increased stress, poor coping mechanisms, unstable housing, limited access to healthcare, and fewer educational and employment opportunities. Meanwhile, the lower likelihood of receiving early intervention or mental health support increases young adults’ vulnerability to substance abuse later in life.6
Social Stigma & Addiction
Stigma is defined as a mark of disgrace associated with a certain quality, circumstance, or person. This can apply to people living with SUDs, as many people believe addiction to be a moral failing on the part of the user.7
SUDs are chronic, treatable medical conditions. However, people living with these disorders tend to face a host of negative attitudes and stereotypes that can impact their health and well-being. And people are far less inclined to seek treatment for an addiction if doing so results in scorn and discrimination.8
The outdated language of addiction stigma—terms like “junkie,” “boozer,” or “alcoholic”—can even sway medical professionals’ attitudes toward SUD. In one 2010 study, clinicians rated a person described as a “substance abuser” as more blameworthy than someone described as “having a substance use disorder.”7
Addiction Costs for Low-Income People
In addition to the negative consequences on one’s health and personal relationships, addiction carries steep financial consequences. From the ongoing financial drain of buying drugs or alcohol to the lost income, healthcare bills, and possible legal fees associated with addiction, the addict’s life is one of financial instability and diminishing assets.
The mounting costs of addiction tend to fuel a vicious cycle. As one’s SUD leads to job loss and impaired credit, the financial stress and anxiety that follow can lead one to more frequent substance use, leading to not only worsening physical and mental health but also deeper debt.
The National Institute on Drug Abuse (NIDA) reported in 2020 that the aggregate cost of SUD in the U.S. is more than $700 billion per year. This figure accounts for hospital visits, law enforcement costs, and the development and testing of preventive and treatment interventions for SUD.9
Low-Cost Addiction Treatment Options
Fortunately, there are many options for low-income people in need of treatment for their alcohol or drug addiction. Two of the most common resources are Medicaid and Medicare.
These government-funded programs provide healthcare coverage, including coverage of addiction treatment, for people who meet certain income, age, or disability criteria. Applying for Medicaid or Medicare is the necessary first step for those unsure of how they might afford treatment.
For those who do not qualify for Medicaid or Medicare, organizations like the Substance Abuse and Mental Health Services Administration (SAMHSA) offer grants to help people find addiction treatment. Many nonprofits and foundations also provide scholarships or grants to those seeking recovery from addiction. These programs are designed so that financial barriers do not hinder people from getting the help they need.
Some treatment facilities, including Empowered Recovery Center in Atlanta, offer flexible payment plans. These plans make it easier for people to enter treatment by breaking up the cost over time, or adjusting the cost based on one’s income.
Depending on the severity of the addiction and the type of substance involved, outpatient rehab programs like those offered at Empowered Recovery Center in Atlanta present an affordable and flexible option compared to residential treatment. Partial hospitalization programs (PHP), intensive outpatient (IOP), or standard outpatient care all allow patients to receive effective therapy and support while still living at home and fulfilling their work, school, or family duties.
Affordable Substance Abuse Treatment in Atlanta
At Empowered Recovery Center in Atlanta, we know that overcoming addiction requires the desire to change your whole way of life. Our addiction treatment programs are made to help you in your journey toward long-term recovery and wellness.
We offer a number of programs designed to fit your unique needs, including partial hospitalization programs (PHP), intensive outpatient (IOP) treatment, and outpatient (OP) treatment. We also offer one full year of free recovery coaching to keep you working on your recovery.
And if you’re concerned about the costs of rehab, including paying for rehab with insurance, our admissions team can answer any questions you have. We can even verify your insurance benefits online or via the phone. If you’re ready to start treatment, reach out today.
H4: References
- USAFacts (2023). What is the definition of poverty in the US? USAFacts. Retrieved June 25, 2025, from https://usafacts.org/articles/definition-of-poverty-in-the-us/
- U.S. Department of Health and Human Services. 2024 Poverty Guidelines: 48 Contiguous States (all states except Alaska and Hawaii). Office of Disease Prevention and Health Promotion. Retrieved June 25, 2025, from https://aspe.hhs.gov/sites/default/files/documents/7240229f28375f54435c5b83a3764cd1/detailed-guidelines-2024.pdf
- U.S. National Library of Medicine (2018). Socioeconomic Disparities and Self-reported Substance Abuse-related Problems. National Institutes of Health. Retrieved June 26, 2025, from https://pmc.ncbi.nlm.nih.gov/articles/PMC6494986/
- U.S. National Library of Medicine (2021). Homelessness and Polysubstance Use: A Qualitative Study on Recovery and Treatment Access Solutions Around an Urban Library in Southern California, USA. National Institutes of Health. Retrieved June 26, 2025, from https://pmc.ncbi.nlm.nih.gov/articles/PMC8590699/
- U.S. National Library of Medicine (2017). Socioeconomic Differences in Adolescent Substance Abuse Treatment Participation and Long-term Outcomes. National Institutes of Health. Retrieved June 26, 2025, from https://pmc.ncbi.nlm.nih.gov/articles/PMC5361576/
- U.S. National Library of Medicine (2010). Disparities in treatment for substance use disorders and co-occurring disorders for ethnic/racial minority youth. National Institutes of Health. Retrieved June 26, 2025, from https://pmc.ncbi.nlm.nih.gov/articles/PMC3488852/
- Harvard Health Publishing (2021). Poverty, homelessness, and social stigma make addiction more deadly. Harvard Medical School. Retrieved June 27, 2025, from https://www.health.harvard.edu/blog/poverty-homelessness-and-social-stigma-make-addiction-more-deadly-202109282602
- National Institute on Drug Abuse (2022). Stigma and Discrimination. National Institutes of Health. Retrieved June 26, 2025, from https://nida.nih.gov/research-topics/stigma-discrimination#research
- Journal of Substance Abuse and Addiction Treatment (2023). Economic benefits of substance use disorder treatment: A systematic literature review of economic evaluation studies from 2003 to 2021. The Journal of Substance Use & Addiction Treatment (JSAT). Retrieved June 27, 2025, from https://www.jsatjournal.com/article/S2949-8759(23)00135-2/fulltext
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