Over 770,000 individuals were living in shelters or on the streets as of January, according to the Department of Housing and Urban Development’s (HUD) latest annual report on homelessness. This figure marks an 18% increase from last year—already a significant rise—and the highest number since HUD began tracking homelessness in 2007.
Released Friday, the report is based on January’s nationwide “point-in-time” count and highlights a growing crisis that advocates have long warned about.
“A lot of families and individuals are still struggling. For deeply poor people, it feels like we’re still in a pandemic recovery,” said Jeff Olivet, former executive director of the U.S. Interagency Council on Homelessness.
Key Drivers of Rising Homelessness
Homelessness has been steadily increasing since 2017, largely due to a severe shortage of affordable housing that has driven rents higher. Research shows a direct correlation: when rents rise, so does homelessness. During the pandemic, federal aid temporarily slowed the trend by helping people stay housed. However, as that assistance ended, many households have faced escalating costs for housing, food, and other necessities.
Another contributing factor is the surge in asylum seekers fleeing dangerous conditions in their home countries. In 13 communities significantly impacted by migration, family homelessness more than doubled, contributing to an overall 39% increase in family homelessness.
The report also noted a rise in the number of people living outdoors, those experiencing chronic homelessness, and unaccompanied youth. However, there was one positive outcome: homelessness among veterans fell to a record low, thanks to substantial investments in subsidized housing and support services.
Extreme weather disasters also played a role. For example, last year’s devastating fire in Maui left 5,200 people still in shelters during the January count.
A Likely Undercount
The annual report, while comprehensive, is considered an undercount as it does not include individuals who are couch-surfing or staying with family and friends due to an inability to afford rent.
Signs of Improvement in Some Areas
Despite the overall rise, HUD suggests that homelessness may have decreased in certain areas since January. For instance, following President Biden’s actions in June to limit asylum claims and cap illegal border crossings, cities like Denver, Chicago, and New York have reported fewer migrants in shelters.
Additionally, rent increases have slowed or even reversed in some cities, and places like Phoenix, Los Angeles, and Dallas have reported declines in homelessness after years of rising numbers.
“These trends show that with the right investments—getting people off the streets and into housing quickly—we can reduce homelessness,” Olivet said.
Broader Challenges and Political Debates
Rising housing costs, fueled by inflation, high interest rates, and labor shortages in construction, continue to hinder progress. The Biden administration has encouraged cities to loosen zoning restrictions to allow for more affordable housing and has increased funding for housing vouchers and subsidies for homeless individuals. However, there is growing political resistance to such spending, including among supporters of President-elect Donald Trump.
Trump has proposed a different approach to homelessness, supporting bans on outdoor street camping and advocating for stricter enforcement of such laws. A recent Supreme Court decision has allowed cities to enforce these bans even when no alternative shelter is available. Trump’s allies also favor redirecting federal homelessness funds toward mandatory treatment for mental illness and drug addiction, and Trump has suggested reopening “mental institutions” for those in need.
Advocates Warn of Potential Consequences
Housing advocates, including Olivet, caution that criminalizing homelessness or shifting funding away from housing solutions could exacerbate the problem. “We need a range of solutions,” he said. “It’s not about choosing one approach over another—it’s about investing in all of them to address the crisis comprehensively.”