Happy Tuesday, and welcome to another edition of Rent Free.
This week's newsletter closes out the year by looking at the latest homelessness census released by the U.S. Department of Housing and Urban Development (HUD), which found a staggering increase in the number of people living on the streets or in shelters.
Number of People Without a Roof Over Their Head Goes Through the Roof
This past Friday, HUD released the results of its Point-in-Time (PIT) count—an annual census of the homeless population conducted each January by local homeless service providers.
The 2024 numbers are not pretty. According to the HUD survey, 771,480 people were homeless in January 2024. Of those, 497,256 were "sheltered" homeless, meaning they were sleeping in an emergency shelter or transitional housing. Another 274,224 people were "unsheltered" homeless who slept outside, in vehicles, abandoned buildings, or other areas not fit for human habitation.
The top-line figure represents a remarkable 18 percent increase in the country's homeless population. That increase is even more shocking when one considers that the country's homeless population grew by 19 percent between 2007 and 2024. Near two decades' worth of growth in the homeless population occurred between 2023 and 2024.
A year-over-year comparison pic.twitter.com/eKA2YrkFlV
— Christian Britschgi (@christianbrits) December 30, 2024
That top-line figure obviously masks a lot of yearly ups and downs. Nevertheless, the numbers are moving decidedly in the wrong direction, and fast.
Breaking Down the Numbers
The huge rise in the homeless population is attributable to related increases in the sheltered homeless population and the number of homeless families.
Of the 118,376 additional homeless people counted in 2024, 100,762 (or 85 percent of the total) were sheltered. This represents a 25 percent annual increase.
The 2024 PIT found that the unsheltered population grew by 17,614, which represents a 7 percent increase. That significant, albeit less severe, increase is effectively a continuation of the steady pre-pandemic rise in the unsheltered homeless population.
Conversely, the sheltered homeless population boom is both a huge increase and a reversal of the trend line. The sheltered homeless population had been on a steady decline in the years before the pandemic. Shelter populations plummeted even more during COVID-19 as shelters slashed capacity as a social distancing measure. This fall was significant enough to push down the overall homeless population, even as the unsheltered homeless population was rising.
Similarly, the 2024 PIT count found a record 39 percent annual increase in homeless families with children. The population of homeless individuals grew by a more modest 9.6 percent. The veteran homeless population was the only group to see a decline, dropping by 7.6 percent.
Migrant Surge, Homeless Surge
The HUD report notes that 13 Continuum of Care (COC) organizations (the local federally funded groups that provide homeless services and perform the PIT) saw a large influx of migrants into their shelter system.
HUD attributes the massive increase in homelessness to a range of factors, including rising housing costs, the belated expiration of some pandemic aid programs and eviction moratoriums, the end of the child tax credit, and "systemic racism." One reason stands out above the rest: the recent influx of migrants to major northern U.S. cities.
"You combine the increase in family homelessness and the increase in sheltered homelessness, it looks like this is overwhelmingly driven by the migrant surge," says Judge Glock, director of research for the Manhattan Institute.
This is most obviously the case in New York City, which has a longstanding, robust "right-to-shelter" policy, and has seen its emergency shelter population grow from 55,677 in 2022 to 81,108 in 2023 to 132,892 in 2024—during which time the city received some 225,000 new migrants and asylum seekers.
New York City's COC attributes 88 percent of the increase in sheltered homelessness to asylum seekers. And the increase in New York City's homeless population accounts for roughly 40 percent of the national increase in the homeless population.
Cities like Boston, Chicago, and Washington, D.C., which all have robust right-to-shelter policies and which have been primary destination cities for new migrants, also reported some of the largest jumps in their homeless populations, Glock notes.
Chicago's COC reported that most of the increase in its homeless population was a result of newly arriving migrants and asylum seekers.
Kevin Corinth of the American Enterprise Institute notes that 75 percent of the increase in sheltered homelessness over the past two years can be attributed to rising shelter populations in Massachusetts, metro Denver, New York City, and Chicago.
One-Off Increases, Chronic Problems
The number of migrants in big-city shelter systems is already falling, thanks partly to smaller influxes of new migrants and cities' own curtailment of shelter benefits.
There were 69,000 migrants in New York's shelter system in January 2024 when this year's PIT was performed, The New York Times reported. That's since fallen to 55,000.
A lingering question is whether this will merely shuffle currently sheltered homeless migrants into unsheltered street homelessness.
The Times reported earlier this summer on a rise in tent encampments in the city, populated by migrants who'd been evicted from the city's shelter system after staying the new maximum of 30 days.
Glock says right-to-shelter policies also pull people into the shelter system and into free temporary housing where they're counted as homeless. Places without right-to-shelter policies have lower overall rates of homelessness, suggesting migrants exiting shelters will find housing on their own.
HUD says that the January PIT likely captured sheltered homeless populations near their peak and that those numbers are declining. We'll have to wait until December 2025 to know for sure if that's true.
The huge, likely migrant-driven increase in the sheltered homeless population obscures the more depressing, humdrum reality from the 2024 HUD homeless report: the number of people sleeping on the streets is at record levels and continues to rise.
Homelessness continues to increase in almost every state in the country. That includes West Coast states that have not experienced a New York City–like migrant surge and already have among the country's worst rates of homelessness.
This steady rise in homelessness has occurred even as federal funding for homeless programs has steadily increased under the Biden administration.
It's no coincidence that homelessness continues to rise as housing continues to get more expensive in the country. Lower housing costs correlate with lower rates of homelessness.
In the places where homelessness is worst, housing costs continue to rise. We can expect homeless problems to continue to rise with them in the new year.
Quick Links
- Earlier this month, the Las Vegas Review-Journal reported that the city of North Las Vegas, Nevada, rejected the nonprofit Tunnels to Towers plan to build a privately funded 112-unit housing complex for low-income veterans on a vacant five-acre lot across the street from a Veterans Affairs hospital. The city argued that the location was a poor fit and thus declined to rezone the commercial property to allow the proposed housing.
- Housing inventory (the total number of homes available for sale) is at the highest it has been since November 2020, reports listing company RedFin.
- Last week, a judge ruled that the City of Los Angeles illegally tried to prevent a housing developer from using the city's streamlined development process known as ED1 to build a 220-unit project in a single-family neighborhood. LAist has the details.
- Mobile home prices are on the rise, reports Fortune.
- California massively undershoots Gov. Gavin Newsom's campaign trail goal of building 3.5 million new homes by 2025.
The post Unprecedented Rise in Homelessness appeared first on Reason.com.