Soaring Rent Prices Fuel Homelessness Crisis in U.S.
According to a recent report released by the U.S. Department of Housing and Urban Development (HUD), homelessness in the United States reached an all-time high in 2023, with a 12% increase from the previous year. This translates to approximately 70,650 more individuals now experiencing homelessness.
The annual Point-In-Time (PIT) Survey, which analyzes the number of homeless individuals nationwide on a single night in January, revealed that over 650,000 people were homeless as of January 2023 – the highest number since the survey began in 2007.
"Homelessness is a solvable problem and should not exist in America," stated HUD Secretary Marcia Fudge. "We've made progress, but there's still more to do. There's still a lot more to do." This escalation in homelessness underscores the urgent need to reinforce established solutions and strategies, enabling swift exits from homelessness and preventing homelessness from arising in the first place.
The report indicated that rising homelessness levels are impacting all types of households, with disproportionate effects on communities of color. In the U.S. black population accounts for 13%, while they constitute 37% of the homeless population and 50% of families with children who fell into homelessness.
By 2023, individuals of Asian or Asian-American descent will experience the most significant increase in homelessness, with a 40% increase anticipated. Over 3,313 individuals from these backgrounds are currently homeless.
Latinx communities experience the highest increase in homelessness. By 2023, their homelessness count surged by 28% compared to the year prior. This demographic makes up 55% of the U.S. homeless population, with 39,106 new Latinx individuals joining the homeless ranks in 2023.
The report also highlighted a sharp increase in the number of individuals experiencing homelessness for the first time.
Analysis of HUD findings demonstrated that the number of first-time homeless individuals between fiscal years 2021 and 2022 had soared by 25%, while the number of individuals who emerged from homelessness into a permanent living situation increased by just 8%.
HUD attributed this increase to a combination of factors.
Rent prices have been on the rise across the United States in recent years. Through November 2023, the national average rent had started to decrease for the first time but still stood 22% higher than November 2019, prior to the pandemic housing boom. The average rent for all housing units remained only 4% below the all-time high of $2,054 USD in August 2022.
Furthermore, the report suggests that the end of pandemic eviction protections and programs in 2022 may contribute to a surge in homelessness in the first month of 2023.
"We must address the primary cause of homelessness and housing instability – the gap between low incomes and rent costs," commented Peggy Bailey, Vice President for Housing and Income Security at the Center on Budget and Policy Priorities. Bailey argued that "we've learned to target specific populations and help them transition out of homelessness. Now we must apply these lessons and expand them to ensure help is available to everyone who needs it."
In the past year, the government has taken several steps to combat homelessness and support homeless individuals.
Implementation of the Housing Supply Action Plan will result in more homes built in 2023 than in any other year. This week, HUD announced that it had aided over 424,000 families in obtaining support services to escape homelessness, avoid homelessness, or become homeless-free by January 2023. At the beginning of 2023, the Veteran Administration announced that it had hosted over 38,000 homeless veterans.
