NYC Spending on Unsheltered Homelessness Soars, Yet Numbers Climb
New York City has increased its spending on unsheltered homelessness significantly since 2019, now nearing $368 million, despite a growing number of individuals living on the streets, as reported by the state comptroller.
City data indicates that the unsheltered population rose from 3,588 in fiscal year 2019 to 4,504 in fiscal year 2025, marking a 26% increase compared to pre-pandemic levels. Meanwhile, expenditures on services for these populations surged by 262%, going from $102 million to almost $368 million.
This amounts to about $81,700 allocated for each unsheltered person in 2025. Interestingly, this figure is slightly above the city’s median household income, but it’s worth noting that comparing public spending to household income isn’t straightforward.
The figures highlight a striking reality: as the homeless population increases, the city is dedicating more and more tax dollars to address the issue.
New York’s shelter system, however, remains notably sizable when compared to national standards. For instance, Los Angeles, which has the second-largest homeless population, had around 71,000 homeless individuals in 2024—about half of New York’s total. Of those, only 70% are unsheltered. In contrast, nearly 97% of New York City’s homeless are reported to be in shelters.
The findings are likely to trigger broader discussions on housing affordability, with rising rents and insufficient affordable housing at the core of New York’s homelessness dilemma—an issue that is clearly on the mayor’s radar, Zoran Mamdani.
Mamdani has suggested implementing a rent freeze on roughly 2 million stable apartment units. However, economists caution that while this move may provide temporary relief to current tenants, it could exacerbate the long-term housing shortage and do little to address the underlying supply crisis fueling homelessness.
On a wider scale, the mayor’s $127 billion budget plan proposes tax hikes for wealthy residents and businesses, potentially up to 9.5%. If state lawmakers don’t take action, the fixed asset tax is set to increase.
Uncertainties linger whether these strategies will actually alleviate the pressure of housing costs or further disrupt the market, as critics argue that rent freezes and increased taxes could deter investment and constrict supply.
In the largest city and a pivotal financial center, Mamdani’s endeavors reach beyond local issues. The outcomes of his housing and tax proposals might not only influence local affordability but also initiate wider dialogues on regulation, taxation, and progressive urban governance.
Mamdani’s office has yet to respond to requests for comment.
