A recent report from New York State illustrates a troubling trend in the city’s response to homelessness. For fiscal year 2025, New York City allocated more than $80,000 per person for services aimed at chronically homeless individuals. This figure represents a significant increase from pre-pandemic spending levels, highlighting a 26 percent rise in the unsheltered population since 2019. The report, released by State Comptroller Thomas P. DiNapoli, sheds light on the ongoing crisis burdening the city’s resources.
In 2019, the city spent just over $28,000 per unsheltered homeless person. By 2025, total services spending for this population skyrocketed from $102 million to nearly $368 million, indicating a staggering 262 percent increase. This surge in costs raises questions about the effectiveness of the city’s efforts. The Department of Homeless Services’ share of total spending on homeless services has also risen significantly, increasing from under 5 percent to nearly 9 percent.
The report distinguishes between the terms “homeless” and “unsheltered homeless.” The broader “homeless” category includes those who may face severe housing insecurity yet have access to some form of shelter, totaling around 140,000 people in New York City. In contrast, the “unsheltered homeless” refers specifically to those living on the streets—a group that increased from 3,588 individuals in 2019 to 4,504 in 2025.
Compounding the issue, reports to the city’s non-emergency number, 311, regarding homeless encampments have risen by 12 percent from the previous year. An average of 4,000 calls monthly in 2025 portrays a growing visibility of street homelessness and public concern.
Comptroller DiNapoli emphasized that despite the city’s attempts to address this crisis, homelessness continues to escalate. He called for a more rigorous examination of expenditure patterns. “The escalation in spending driven by the increase in the unsheltered population, however, merits greater focus on where resources are going and what services are working,” he stated. DiNapoli advocates for actionable steps that include tracking the outcomes for those seeking services and improving transparency around the performance of outreach and service vendors.
Mayor Zohran Mamdani, who has made housing a priority for his administration, recently shifted his stance on homeless encampments. Following a series of severe weather conditions that tragically affected the homeless community, he reversed his initial pledge not to sweep these encampments. This change of heart occurred shortly after he took office, indicating the immense pressure officials face in addressing crisis situations promptly.
The timing of DiNapoli’s report raises further scrutiny, with its release coinciding with Mamdani’s cancellation of a CBS News interview following critical coverage from a digital platform. Such actions can be interpreted as efforts to manage public perception amid mounting challenges.
Overall, these findings reveal a growing crisis of homelessness that defies the city’s spending efforts. As budgets swell and populations rise, the critical question remains: are the resources being directed effectively to truly address the needs of the vulnerable individuals living on the streets?
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