U.S. Faces Surging Homelessness Amid Affordable Housing Shortage

The United States is confronting an unprecedented surge in homelessness, with the Department of Housing and Urban Development (HUD) reporting an 18% increase in 2024, bringing the total to over 770,000 individuals. This escalation is closely tied to a severe shortage of affordable housing, as highlighted by the National Low Income Housing Coalition (NLIHC), which identifies a deficit of 7.1 million affordable rental homes for extremely low-income renters.

According to HUD's 2024 Annual Homeless Assessment Report, the number of people experiencing homelessness on a single night in January 2024 was 771,480, marking a significant rise from previous years. This increase is attributed to factors such as unaffordable housing, natural disasters, and an influx of migrants in major cities. Notably, family homelessness increased by nearly 40%, with children under 18 experiencing a 33% rise, totaling approximately 150,000 homeless children.

The NLIHC's report, "The Gap: A Shortage of Affordable Homes," released in March 2025, reveals that for every 100 extremely low-income renter households, only 35 affordable and available rental homes exist. Consequently, 75% of these renters are severely cost-burdened, spending more than half of their income on rent. States like Nevada, Oregon, California, Arizona, and Texas face the most acute shortages, each having fewer than 30 affordable rental homes per 100 extremely low-income renters.

In response to the crisis, various cities have implemented measures to address the shortage. Santa Fe, New Mexico, has linked its minimum wage to both consumer prices and fair market rental rates, aiming to help workers afford living in the city amid skyrocketing housing costs. Similarly, Atlanta, Georgia, has committed to delivering 20,000 affordable housing units by 2030 to combat rising homelessness.

At the federal level, actions have also been taken. In July 2025, President Donald Trump signed an executive order directing cities and states to dismantle homeless encampments and redirect individuals into treatment centers. This move has faced criticism from advocacy organizations for potentially criminalizing homelessness without providing comprehensive solutions. Additionally, a coalition of 20 states has filed a lawsuit to block the administration's efforts to impose new restrictions on over $3 billion in federal grant funding used to support homeless services, arguing violations of federal law and targeting marginalized groups.

The affordable housing crisis and rising homelessness have profound societal implications, including increased strain on social services, public health concerns, and economic impacts due to decreased workforce stability. The disproportionate effect on children and families raises concerns about long-term societal consequences, such as intergenerational poverty and reduced educational attainment.

Addressing this multifaceted crisis requires coordinated efforts at both local and federal levels, focusing on increasing the supply of affordable housing, providing supportive services, and implementing policies that prevent homelessness before it begins.