Markets
March 17, 2026
US homeless spending 2026 has come under the radar, raising questions about its effectiveness and the city’s accountability. According to a new state report, New York City spent $368 million on homeless services in FY 2025.
This translates into an annual expense of roughly $81,705 per homeless person, more than the median household income in New York City. The report also suggests that NYC homeless budget is expected to increase to $456 million in FY 2026, a 23.9% jump. Despite these high spending, the homeless population in NYC has increased from 3,588 in FY 2019 to 4,504 in FY 2025, a 25.5% rise.
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NYC Spends $81K, LA $62K, Portland $95K as Homeless Deaths Quadruple
It’s not just New York City. Cities across the US are spending more on homelessness. There has been an average 320% increase in US homelessness spending since 2019 in four major US cities. NYC reported a 187% rise, SF 190%, Portland 430%, and LA 480%. Over the same period, the homeless population across these four cities increased by 13%.
If we look at New York City, it becomes apparent that the increase in spending over the last six years hasn’t yielded meaningful results. The homeless population has increased by 26%. This, despite the fact that the expenditure has been almost tripled, from $28,428/person in FY 2019 to $81,705/person in FY 2025. The expenditure is expected to hit $97,000 per person in FY 2026.
For LA, spending increased from $10,000 per homeless person in 2019 to $62,000 in 2024, an almost 480% rise. In the same period, the number of homeless people grew by 23%.
In Portland, spending increased by roughly 430% from $18,000/ homeless person in 2019 to around $95,000 in 2024. It’s the only city among the four where the homeless population has remained stable and not increased dramatically.
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San Francisco spends the most on its homeless population, $102,000 per person in 2024, up from $35,000 in 2019. During this period, the total homeless population increased by 4%.
Half of Americans Can’t Afford Rent While Cities Spend Billions With No Results
The high spending on the homeless and their minimal impact on controlling the rising population has led to many raising concerns, especially as the housing affordability 2026 crisis is affecting people. A report in RedFin News suggests that 49% of Americans are struggling to pay rent or mortgage payments.
The report also suggests that Americans affected by the housing affordability crisis are eating out less, skipping vacations, and deferring medical treatment. When coupled with reports of Social Security insolvency and cuts of up to $560, people are bound to raise questions.
Reacting to the US homeless spending 2026, Elon Musk had a one-word response, “Wow.” This response has sparked discussions about Elon Musk’s homeless tweet.
The concerns raised about the effectiveness of expenditures and the calls for accountability seem long overdue, as there has been no apparent improvement despite the high spending. For now, we will have to wait and see how the situation evolves, and whether cities change their approach as the risk of rising inflation looms due to the Iran war.
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