The American Dream in Crisis: Homelessness Reaches a Record High in 2024


WASHINGTON, D.C. – Homelessness in the United States surged to an all-time high in 2024, with over 771,000 people experiencing homelessness in January alone, according to the U.S. Department of Housing and Urban Development’s (HUD) annual report. This figure represents an 18% increase from 2023, marking the largest single-year rise since national data collection on homelessness began.
The report, submitted to Congress, attributes the surge to a lack of affordable housing, rising inflation, stagnant wages, and the lingering economic effects of the COVID-19 pandemic. Additionally, natural disasters and an influx of asylum seekers have put added pressure on the nation’s housing system, leading to increased homelessness in shelters and on the streets.
Alarming Trends Across Demographics
HUD data indicates that nearly all demographic groups have experienced a rise in homelessness, with some groups facing more severe impacts:
- Families with children: Homelessness among families increased by 39%, the highest rise among all groups. Nearly 150,000 children are now homeless, marking a 33% increase from the previous year.
- Chronic homelessness: One-third of all homeless individuals reported chronic patterns of homelessness, the highest rate ever recorded. More than 65% of these individuals live without shelter.
- Veterans see improvement: The only group to experience a decline in homelessness was veterans, with an 8% decrease, attributed to targeted federal programs and sustained funding.
The report also highlights racial disparities in homelessness. While Black Americans make up 12% of the U.S. population and 21% of the country’s poor, they account for 32% of all homeless individuals in 2024. However, this marks a decrease from 37% in 2023, showing some progress in addressing racial disparities.
Geographic Challenges
More than half of the homeless population is concentrated in major U.S. cities, with California and New York continuing to have the highest rates of homelessness. However, certain regions saw dramatic increases due to specific crises:
- Hawaii: The Maui wildfires displaced over 5,000 people, forcing them into emergency shelters and resulting in an 87% increase in homelessness statewide.
- Illinois: Homelessness in Illinois rose by 116%, the highest percentage increase among all states. Chicago alone accounted for 91% of this surge, driven largely by an influx of asylum seekers and refugee families entering emergency shelters.
- New York: Homelessness in New York increased by 53%, fueled by rising rents, the expiration of eviction moratoriums, and cuts to housing assistance programs.
- California: The homelessness crisis in California reached an unprecedented peak in 2024. According to HUD’s annual assessment, the state recorded 48 homeless individuals per 10,000 residents, more than double the national average.
Many homeless individuals live in their vehicles in public parks. Photo: Faisal Karimi/Nowruz
Systemic Causes of Homelessness
The report identifies the affordable housing crisis as the primary driver behind the surge in homelessness. A shortage of low-income housing units, inflation, and the end of pandemic-era financial assistance have left many families unable to afford stable housing.
The report also highlights natural disasters and an increase in asylum seekers as key contributors to the crisis. In 2024, at least 13 Homeless Continuum of Care programs reported that these factors directly influenced homelessness rates in their regions. Additionally, many pandemic-era housing assistance programs have expired, leaving thousands of families in precarious situations.
