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Homelessness in America Hits Record High in 2023: An Alarming Trend

In 2023, the United States witnessed a startling rise in homelessness, reaching a record high since data collection began. The Department of Housing and Urban Development’s (HUD) Annual Homeless Assessment Report Part 1, released on December 15, 2023, provides a comprehensive view of the situation.

The Current State of Homelessness

According to the 2023 Point-in-Time (PIT) Count, a staggering 653,104 people were experiencing homelessness. This figure represents an unprecedented 12% increase from the previous year, marking the highest ever recorded since data collection started in 2007. Significantly, this rise isn’t confined to urban areas; rural and suburban communities also reported increases in homelessness, particularly unsheltered homelessness.

Demographics and Specific Challenges

The increase in homelessness affected various demographics differently. There was a marked 40% increase in Asian/Asian American homelessness, the highest among all ethnic groups, followed by a 28% increase in the Latino community. Additionally, 46% of older adults experiencing homelessness were found living unsheltered. The report for 2023 was the first time the PIT Count collected data about this age group, which comprises 21% of the overall homeless population. Another worrying trend is the 60% increase in homelessness among unaccompanied youth, with New York City CoC reporting a 75% increase compared to 2022.

Underlying Causes

Several factors have contributed to this alarming rise. Key among them is a 30% increase in the number of people entering homelessness for the first time between 2020 and 2022. This surge can be partly attributed to the expiring federal eviction moratorium and the phasing out of federal COVID relief. Additionally, the shortage of affordable housing has been a significant driver, with only 61 affordable units available for every 100 extremely low-income renters. The sharp increase in rents, particularly in late 2022, exacerbated the situation. For instance, in Santa Cruz, CA, a renter would need to earn $63.33 per hour to afford a two-bedroom apartment.

Federal and Community Responses

In response to this crisis, HUD and other federal agencies have initiated several measures. The Biden administration’s American Rescue Plan, described as the largest single-year investment in addressing homelessness in U.S. history, has played a crucial role in preventing a rise in homelessness between 2020 and 2022. However, many of these resources have now expired or wound down, contributing to the increase in homelessness. On a positive note, some communities have made significant strides in reducing homelessness. For example, Louisiana reduced homelessness by 57%, and Delaware by 47.4%. Some regions, like Jackson, MS, and Chattanooga, TN, have achieved substantial reductions in unsheltered homelessness.

The 2023 data on homelessness in America paints a distressing picture of a worsening crisis, compounded by economic factors and a shortage of affordable housing. The rise in first-time homelessness, particularly among specific demographics, underscores the urgent need for comprehensive strategies to address this issue. While there have been some positive developments in reducing homelessness in certain areas, the overall trend demands concerted efforts from federal, state, and local governments to find sustainable solutions.

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