Overview of Sheltered Homelessness Trends

Between 2022 and 2024, the United States witnessed an unprecedented 43% increase in “sheltered homelessness,” defined as individuals residing in emergency shelters rather than living on the streets. According to a recent study, this alarming rise correlates significantly with a surge in asylum seekers, who accounted for 60% of this increase.

Definition and Context

The term “asylum seekers” refers to new immigrants seeking residency in the U.S., irrespective of their legal status. Historical data indicates that while unsheltered homelessness has been climbing since 2015, the decline in sheltered homelessness observed between 2007 and 2022 was finally reversed with this dramatic spike from 2022 onward.

Key Statistics and Findings

• The total homeless population in the U.S. grew by approximately 189,000, rising from about 582,000 to 771,000.
• Of this, the sheltered homeless population increased by 149,000, from roughly 348,000 to about 497,000, with nearly 93,000 of these individuals being asylum seekers.
• Majority of the rise in sheltered homelessness occurred in four sanctuary areas—New York City, Chicago, Denver, and Massachusetts—although these areas make up only 5% of the nation’s population.

Localized Increases in Asylum Seekers

New York City, which enforces a right-to-shelter policy regardless of immigration status, reported the highest influx, including an estimated 67,000 asylum seekers. The accessibility of services in New York has attracted many migrants, as evidenced by reports of those bused to New Jersey relocating to the city.

Chicago, known as a “Welcoming City,” experienced a similar trend, where its sheltered homeless population surged from around 2,600 in 2022 to 17,200 in 2024, with 94% of this increase attributed to asylum seekers.

Financial Implications for Local Governments

The influx of asylum seekers has significant financial impacts on local economies. In New York, the city anticipates spending approximately $4.37 billion on services for asylum seekers in FY2025, a dramatic increase from $1.47 billion in FY2023. This translates to roughly $530 per year for each New York City resident.

Comparison with Non-Welcoming Areas

Interestingly, regions that did not actively engage in offering services to individuals who entered the U.S. unlawfully did not face similar increases in homelessness. For instance, Florida, with a rapid rise in asylum seekers from Cuba and Haiti, only saw a 20% overall increase in its homeless population. Texas reported a modest 14% increase amid significant illegal border crossings.

Policy Implications and Future Outlook

The recent changes in federal immigration policies under the Biden administration have led to a dramatic increase in the number of individuals paroled into the U.S. pending asylum hearings, expanding from 30,500 in 2021 to approximately 1.7 million in 2024. In contrast, under the Trump administration, the numbers of illegal entrants saw a sharp decrease.

Looking forward, potential shifts in federal funding may arise, as the Trump administration has indicated plans to hold sanctuary cities accountable for non-compliance with immigration laws, potentially impacting budget allocations for those areas.