NYC Spending on Homeless Services Surges
Last year, New York City allocated around $81,000 for each individual receiving homeless services, leading to a staggering total of $368 million, according to a recent state report. This figure, I have to say, is quite surprising.
Interestingly, funding for the street homelessness division within the city’s Department of Homeless Services has ballooned to more than three times its amount from six years ago—up from $102 million in 2019. I mean, that’s quite the increase.
In a report released on Wednesday, it was revealed that the city spent approximately $28,000 for each person categorized as an “unsheltered homeless” individual that same year.
For context, unsheltered homeless individuals are those living on the streets, distinct from those in affordable housing or long-term shelters. It’s a tough situation, and, unfortunately, the unsheltered population in the city rose by 26% during this period.
The numbers are striking; there were about 3,588 unsheltered homeless individuals in 2019, compared to 4,505 in 2025. It’s eye-opening, really.
“While New York City has managed to provide shelter for most of its homeless population, the number of individuals living on its streets keeps rising,” remarked State Comptroller Thomas P. DiNapoli in the report. There’s clearly more to consider here.
He added that the escalating spending correlates with the increasing number of unsheltered individuals, which calls for closer examination of resource allocation and the effectiveness of various services.
“Street homelessness has been a persistent issue and requires focused efforts to get vulnerable New Yorkers into safe spaces and away from the cold,” he emphasized.
Looking ahead, spending on services for the unsheltered homeless is projected to reach around $456 million by fiscal year 2026, as noted by the Comptroller’s Office. It seems like this problem is far from over.
A significant factor for the rising costs over the last six years appears to be “low barrier beds.” These are easily accessible overnight shelters designed to attract individuals who may be hesitant to engage with traditional systems.
Currently, the city’s total homeless population stands at approximately 140,000, reflecting an alarming increase of nearly 78% since 2019, as reported by the Office of the Inspector General.
Despite these numbers, the city has managed to provide some form of shelter to about 97% of the homeless population—a “remarkable accomplishment,” according to DiNapoli’s office. Still, there’s always room for improvement, right?
Before the upcoming mayor, Zoran Mamdani, takes office on January 1, he has begun to ramp up spending on homelessness. Just last week, his administration finalized a three-year, $1.86 billion contract with City Hotels to provide housing for the homeless. It’s a similar system to what former Mayor Eric Adams employed for immigrants arriving in the city.
Initially, Mamdani promised to stop clearing homeless encampments, allowing individuals to stay on the streets if they so desired. However, following the tragic deaths of at least 15 New Yorkers in severe cold, he reversed his stance and reinstated those measures in February.
Mamdani has expressed commitments to ensure his approach yields “better results” than that of Adams, with plans for the initiative to be overseen by city DHS officials.
