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U.S. Homelessness Rose to 745,000 by 2025

National homelessness increased as major cities significantly boosted spending on support programs.

Updated on Sept. 30, 2026 in Employment

Bold flat-color editorial illustration showing dense, abstract geometric housing blocks beside a single steel girder, representing national housing shortages.
The U.S. homeless population grew to 745,000 by 2025 as major cities struggled to align increased support spending with critical housing inventory shortages. AI Illustration. Upload story photo >

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The total U.S. homeless population grew from 580,000 in 2020 to 745,000 in 2025. During this period, twelve major American cities increased their combined spending on homelessness support services by 75%.

Why it matters

The rising count of unhoused individuals reflects a broader economic trend where the rate of housing loss due to high rents and supply shortages outpaces local support efforts.

Official government statistics confirm a national rise to 745,000 homeless individuals in 2025, an increase from 580,000 in 2020. Unresolved factors include the precise impact of the 75% spending hike in major cities on these aggregate population figures.

The players

New York City

This city increased its homeless-related budget from $1.4 billion in 2016 to $4 billion in 2025.

Phoenix

The city expanded its shelter capacity to 1,600 beds by 2025 but continues to struggle with a waiting list of 43,000 for housing vouchers.

San Francisco

The city has seen its homeless population grow to over 8,600 individuals over the past decade.

The details

While cities like New York and Phoenix have aggressively increased budgets, securing permanent housing remains difficult for those exiting shelter systems. Arizona faces a shortage of 270,000 housing units, limiting the ability for support initiatives to transition individuals into stable residences.

Timeline

  1. In 2016, New York City spent $1.4 billion on homeless services.

  2. The total U.S. homeless count was 580,000 in 2020.

  3. Phoenix recorded a homeless population of 6,900 in 2021.

  4. Phoenix stopped accepting new housing voucher applications in 2023.

  5. The national homeless population reached 745,000 in 2025.

Macro View

This story follows a pattern set by the 270,000 unit housing shortage in Arizona, illustrating how structural housing deficits limit the success of municipal social programs. These trends mirror broader economic cycles where localized support initiatives are often overwhelmed by larger market failures.

Rising homelessness and increased municipal spending often translate to higher local tax burdens or redirected civic resources for the average taxpayer. Simultaneously, the limited supply of affordable housing units continues to constrain rental market options for low-income residents.

The takeaway

While cities are significantly increasing funding for support services, the persistent lack of housing units remains the primary obstacle to reducing homelessness. Addressing this crisis likely requires long-term solutions that prioritize increasing the overall supply of affordable housing for the population.

Further reading

For additional insights on the economic landscape, visit the United States Employment section.

Source note: This article includes information reported by 조선일보.

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Is increasing government spending the most effective way to reduce homelessness in your community?