HUD Report: Homelessness Drops 3% in 2025, but Long-Term Trends Show Crisis Deepening Since 'Housing First' Era

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) released its 2025 Annual Homelessness Assessment Report: Part 1: Point-in-Time (PIT) Estimates on June 1, 2026, revealing that 745,652 people were homeless on a single night in January 2025.

Of those, 266,320 were living unsheltered on the streets. While the overall homeless count decreased by 3% from 2024—a decline attributed largely to reductions in Sanctuary Cities—the long-term picture remains stark.

Since 2013, when HUD began implementing 'Housing First' policies, homelessness has surged 27%, unsheltered homelessness has risen 36%, and chronic homelessness has skyrocketed 81%. The report also noted that the number of taxpayer-funded shelter beds increased 151% and Continuum of Care (CoC) spending grew 111% over the same period.

HUD Secretary Scott Turner stated, 'The data is clear that the status quo of 'housing first' has failed to meaningfully reduce homelessness, resulting in crisis levels of people living on the streets.' He added that HUD is refocusing its programs to promote recovery and self-sufficiency. The PIT counts do not include individuals living in taxpayer-funded housing assistance for the homeless, meaning the total number of people either homeless or in subsidized housing reached 1,456,923.