U.S. Homelessness Climbed to 745,000 by 2025
As municipal spending on support services rises, businesses face broader impacts from the ongoing housing shortage.
Updated on Sept. 30, 2026 in Employment
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The number of homeless individuals in the United States reached 745,000 in 2025, up from 580,000 in 2020. This trend persists even as twelve major U.S. cities increased their support spending by 75% over a five-year period.
Why it matters
The rapid pace at which individuals lose housing due to rent levels and inventory shortages continues to outstrip the capacity of local government support initiatives. For operators, this creates a volatile labor and service environment where housing supply constraints pressure the broader community.
U.S. homelessness grew to 745,000 in 2025 vs. 580,000 in 2020, while city-level support spending jumped 75% over five years. In Phoenix, spending rose fivefold even as the housing deficit reached 270,000 units.
The players
Phoenix
A major southwestern city that increased homeless expenditures fivefold between 2020 and 2025.
New York City
The nation's largest municipal entity, where homeless-related spending grew to $4 billion in 2025.
San Francisco
A West Coast municipal center that has seen its homeless population grow to over 8,600 over the past decade.
The details
Cities are scaling up direct support infrastructure to manage the rising crisis, with Phoenix expanding shelter capacity from 200 beds in 2020 to 1,600 today. Despite these outlays, administrative bottlenecks persist, such as Phoenix halting new housing voucher applications in 2023 with 43,000 people still on the waiting list. This disconnect between service spending and permanent housing availability underscores the difficulty of transitioning individuals out of emergency programs.
Timeline
2016 marked the start of the current observation period for NYC, when the budget was $1.4 billion.
2020 saw the total U.S. homeless count reach 580,000.
2021 was the year the Phoenix homeless count stood at 6,900.
2023 was when Phoenix ceased accepting new housing voucher applications.
2025 serves as the current reporting year, with U.S. homelessness reaching 745,000.
Market Landscape
The rapid growth in New York City's homeless spending from the 2016 NYC homeless budget baseline reflects a national pattern of escalating municipal costs. This trend highlights the divergence between increasing emergency service budgets and the persistent, systemic housing unit shortages.
Operators should monitor local municipal budget allocations and housing policies, as these directly influence labor availability and regional operating costs. In regions with significant housing shortages, firms must account for the impact of social instability on service delivery and staff retention.
The takeaway
The sustained rise in homelessness despite massive municipal spending increases suggests that service outlays alone are not narrowing the gap in housing availability. Owners should track state-level housing unit metrics to better anticipate long-term shifts in their local labor and customer base.
Further reading
For broader context on regional workforce and social dynamics, visit the Employment section.
Source note: This article includes information reported by 조선일보.
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