An algorithm designed to simulate the behavior of
households while they compete for housing is described. The algorithm accepts
as inputs an existing housing state, a new household demand for dwellings and a
new supply of dwellings. The acquisition of these available dwellings
by the homeless households is simulated producing a new housing state,
modified dwelling costs and measures of household dissatisfaction and
dwelling shortages. The algorithm is defined using the Algol 60
language and preliminary parameter sensitivity results are presented.