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I have worked with the homeless in Atlanta GA for many years.
First there is no "one reason"
What you have is many factors.
1. Drinking and/or drug problems
2. Criminal activities
3. Some lose thier jobs and have no where to go ( but normaly they get into programs fairly shortly.
The largest number I normally run into is mental health issue.
They get committed for a few weeks, get thier drugs and then they are released. They do some out call medicine for a few days or weeks. Next they start getting more mental health issues, sell thier drugs instead of taking them, and soon they are too freaked out to go get any more help.
They drift on the streets, in and out of jail, and back into mental health, and so on and so on.
Many of the pan handlers actually make 200 to 300 dollars a day. Tax free, but they spend it on drugs or sex.
Alot of them will not accept any help, even in bad weather, because some of the shelters require them to take a shower, they won't go.
Others require them to be sober and not use drugs while there, so they won't go. ( or have been kicked out a certain number of times and can't go back)
Other shelters charge a small daily fee, 3 to 9 dollars and they will not or can not pay that amount.
While not all of them, but the majority could be living somewhere either with someone or in shelters or gov housing, but they choice a life style that makes that impossible.
Thank You So Much! 
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