Cape Town, South Africa, has an estimated 14,357 people living on the street or in temporary shelters. Current responses to homelessness are either punitive—focusing on law enforcement and displacement—or compassionate, offering basic relief like food or handouts. Neither approach is effectively addressing the root causes of homelessness, and the number of homeless individuals continues to rise. This paper advocates for a developmental approach that provides structured support to help people exit homelessness. There is limited knowledge about the causes of homelessness in South Africa, the services utilized by those affected, and the kind of support needed for sustainable solutions. To address this gap, a survey of 350 homeless individuals in Cape Town was conducted, gathering data on demographics, service use, income sources, health, substance use, and interactions with legal systems. The results reveal that the average duration of homelessness is 8.6 years, with over 70% of respondents experiencing homelessness for more than a year. The main causes of homelessness were identified as structural issues such as lack of income, housing access, and loss of family support. Only 11% of participants were in temporary shelters, and their average daily income was around R78 (about $4 USD). Substance use disorders were prevalent, affecting 63% of respondents, while 54% reported being arrested at least once during their experiencing homelessness. Most had not accessed developmental services, highlighting a critical gap in support. If the current approach persists, homelessness will worsen, with more individuals becoming entrenched in chronic homelessness. A shift towards a developmental approach is urgently needed, focusing on personalized support, affordable housing, rehabilitation, psychosocial services, and employment programs to facilitate a meaningful exit from homelessness.