Homelessness services face scrutiny over rising costs and shelter expansion

Data from the Cicero Institute indicates that compensation at American homeless non-governmental organizations (NGOs) grew by $7.7 billion between 2013 and 2024. During this same period, the national homelessness count rose to a record 771,480. An analysis of 1,458 Continuum of Care (CoC) providers shows that compensation growth significantly outpaced both inflation and the growth in the homelessness population. The report suggests the current system prioritizes funding for inputs, such as salaries and services, rather than measurable outcomes like successful transitions to permanent housing.

In New York City, the number of homeless shelters increased by nearly 50% over the last four years, rising from 333 to 499. Department of Homeless Services data shows the daily homeless population has surged, with approximately 83,407 residents in the system recently reported. Critics of current local policies argue that factors such as rent control contribute to housing shortages, while the shelter system faces significant taxpayer costs.