The best outcome for an individual or family is never to experience homelessness at all. Prevention programs can span a variety of preventative methods, including policies, practices, and interventions that reduce the likelihood that someone will experience homelessness. Often these programs provide those who have been homeless with the necessary resources and supports to stabilize their housing, enhance integration and social inclusion, and ultimately reduce the risk of the recurrence of homelessness.

Prevention can be thought of as having three levels. The first is very broad: universal interventions that are directed at whole communities, such as poverty reduction strategies. The second involves immediately at-risk individuals, and usually involves more personal intervention, including tenant-landlord mediation and case management. The third looks at ways to prevent or reduce repeat episodes of homelessness by providing appropriate program responses. 

Diversion, or shelter diversion, assists households in quickly securing temporary or permanent solutions to homelessness outside of the shelter and homeless services system. Diversion services target those who are requesting entry into shelter or housing and have not yet accessed homeless services.