U.S. Homelessness Has Grown Nearly a Third Since 2013, New HUD Data Reveals
The United States is facing a deepening homelessness crisis, according to the latest figures released by the U.S. Department of Housing and Urban Development (HUD). As of January 2025, an estimated 745,652 people were experiencing homelessness across the country — a staggering 27% increase compared to 2013 levels. The report is reigniting a fierce national debate over housing policy, government spending priorities, and the effectiveness of long-standing federal programs designed to address life on the streets.
While the data does offer one glimmer of hope — a modest 3% decrease compared to January 2024 figures — critics and policymakers alike are divided over what is driving that small decline and what it truly means for the millions of Americans who remain vulnerable to housing instability.
What the 2025 HUD Report Actually Shows
HUD's annual report, known as the Annual Homeless Assessment Report (AHAR), is considered the most comprehensive snapshot of homelessness in America. The January 2025 count placed the total number of homeless individuals at 745,652. This figure captures people staying in emergency shelters, transitional housing programs, and those living unsheltered — on streets, in parks, in cars, and in other places not meant for human habitation.
The 27% increase over the past 12 years signals that despite billions of dollars in federal investment, homelessness in the United States has not been brought under control. In fact, the scale of the problem is substantially larger today than it was a decade ago. Researchers and advocates point to a convergence of factors including skyrocketing housing costs, stagnant wages, the lingering economic effects of the COVID-19 pandemic, and a national shortage of affordable rental units.
HUD attributed the slight year-over-year decline from 2024 to 2025 in part to reductions in what it described as "sanctuary cities" — jurisdictions with policies that limit cooperation with federal immigration enforcement. This framing immediately drew attention and criticism from housing advocates who argue that immigration policy has little to do with the root causes of homelessness.
Scott Turner and the Attack on 'Housing First'
HUD Secretary Scott Turner seized on the long-term data to deliver a sharp rebuke of the federal government's dominant approach to homelessness over the past two decades: the "Housing First" model. Housing First is a strategy that prioritizes placing homeless individuals into stable housing as quickly as possible, without requiring them to first complete drug treatment programs, mental health counseling, or other preconditions for receiving assistance.
Proponents of Housing First have long argued that stable shelter is a prerequisite for addressing all other challenges a homeless person faces. Dozens of studies over the years have suggested the model is effective at keeping people housed once they are placed. However, critics — including Turner and the broader Trump administration — contend that the approach simply warehouses people without helping them overcome addiction or achieve long-term self-sufficiency.
"The data is clear that the status quo of 'Housing First' has failed to meaningfully reduce homelessness, resulting in crisis levels of people living on the streets," Turner said in a formal statement. "HUD is restoring its programs to advance recovery and self-sufficiency and to ensure that taxpayer-funded benefits serve American families."
Turner's remarks signal a significant philosophical and policy shift at HUD, one that could reshape how federal homelessness funding is structured and distributed for years to come.
Budget Cuts and the Political Battle Over HUD Funding
The release of the homelessness report comes at a particularly charged moment for HUD as an institution. The Trump administration has put forward a federal budget proposal that would slash HUD's overall funding by approximately 13%. Embedded in that proposal are deep cuts to several homeless diversionary programs — initiatives designed to prevent people from losing their housing in the first place, rather than serving them after the fact.
The administration has framed these cuts as a necessary correction, arguing that years of spending guided by what it characterized as "woke" ideological causes have failed to produce results. Critics, however, warn that cutting the very programs designed to address the housing crisis during a period of record-high homelessness is counterproductive and dangerous.
Industry Groups Sound the Alarm
The proposed budget reductions have alarmed a broad coalition of housing and real estate organizations. The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) have both publicly raised concerns about the potential consequences of deep cuts to federal housing programs. These groups argue that without sustained federal investment in affordable housing infrastructure and homelessness prevention, the crisis will continue to worsen regardless of which policy model is applied on the ground.
- The National Association of Realtors has called for maintaining or expanding funding for housing vouchers and emergency rental assistance programs.
- The National Association of Home Builders has warned that reduced HUD investment will further constrain the supply of affordable housing in underserved markets.
- Nonprofit housing advocates have criticized the budget proposal for eliminating programs that serve the most vulnerable populations, including veterans, families with children, and individuals with serious mental illness.
The Broader Context: Why Homelessness Keeps Rising
Understanding the 27% rise in homelessness since 2013 requires looking beyond policy debates to structural forces reshaping the American housing market. Median rents have increased dramatically in cities and suburbs alike over the past decade. The supply of affordable housing units has failed to keep pace with demand, particularly in high-cost metropolitan areas along the West Coast and in major Sun Belt cities. At the same time, federal rental assistance programs have waiting lists that can stretch for years, leaving many low-income families with no safety net when a financial crisis hits.
Mental health and addiction services — often cited as necessary complements to housing placement — are chronically underfunded across most states. Without adequate wraparound services, even the most well-designed housing programs can struggle to achieve lasting outcomes for the most vulnerable homeless individuals.
What Comes Next for U.S. Homelessness Policy
The 2025 AHAR report has set the stage for what promises to be an intense policy debate throughout the year. HUD under Secretary Turner is expected to issue new guidelines that shift federal funding away from Housing First models and toward programs that require treatment participation or compliance with sobriety requirements as conditions for receiving housing assistance.
Advocates for the homeless are preparing legal and legislative challenges to these shifts, arguing that conditioning housing access on behavioral compliance has historically pushed the most vulnerable individuals further from the help they need. Members of Congress from both parties — particularly those representing states with large urban homeless populations — are expected to push back on the proposed budget cuts as the appropriations process moves forward.
The data is stark: nearly three-quarters of a million Americans do not have a stable place to call home. How the federal government chooses to respond to that reality — whether through budget cuts or increased investment, through conditioned assistance or unconditional support — will have profound consequences for communities across the country.