The U.S. homelessness population experienced its largest drop in more than a decade last year, decreasing by more than 6% in 2025. According to an annual count across communities nationwide, this positive shift amounts to roughly 49,000 fewer people without housing, marking the second consecutive year of decline following a smaller drop in 2024.
Trump Administration Credits Border and Policy Changes
Housing and Urban Development (HUD) Secretary Scott Turner pointed to executive actions as the primary driver behind the shift. In a press release, Turner attributed the numbers to measures designed to secure the border, remove criminal individuals from streets, and restore community safety.
The Trump administration specifically highlighted changes in immigration policy as a major catalyst. During the previous administration, major metropolitan hubs like New York, Chicago, Boston, and Denver witnessed a substantial influx of asylum seekers utilizing municipal shelters. According to Devon Kurtz, Public Safety Policy Director at the Cicero Institute, those exact four cities have accounted for half of the recent drop in homelessness.
Alternative Explanations and Independent Analysis
While federal officials emphasized border enforcement and enforcement measures like clearing public encampments following a 2024 Supreme Court ruling, independent groups found different driving forces. A separate analysis commissioned by the advocacy group National Alliance to End Homelessness confirmed a similar nationwide decline but credited different underlying mechanisms.
Ann Oliva, CEO of the alliance, emphasized that federally funded housing initiatives are successfully getting individuals off the streets. She noted that broader economic factors, such as softening rental markets where costs have retreated from pandemic-era peaks, also helped stem the flow of newly unhoused individuals. Additionally, regions affected by severe weather disasters—such as western North Carolina and Hawaii—saw drops as emergency assistance brought unhoused populations into the system.
- 6% nationwide drop in the unhoused population during 2025.
- 49,000 fewer people living on the streets or in shelters.
- 7% decrease in U.S. veteran homelessness last year.
- Nearly 700,000 people still living without permanent housing overall.
Focus on Treatment, Veterans, and Remaining Challenges
The federal government is currently seeking to overhaul billions in homelessness spending to prioritize short-term housing paired with mandatory mental health and addiction treatment. The administration argues that traditional "housing first" approaches—which offer voluntary treatment—failed during the pandemic. Critics, however, warn that strict drug-free requirements in facilities like those expanding in San Francisco could push relapsing individuals back onto the streets.
Despite the overall positive trend, significant hurdles remain. Overall homelessness stays significantly higher than pre-pandemic baselines, with nearly 700,000 individuals still living in shelters or outdoors. Furthermore, while veteran homelessness has plummeted nearly 60% since 2010—dropping another 7% last year—chronic homelessness involving long-term unhoused individuals saw a slight uptick.
Frequently Asked Questions
How much did U.S. homelessness drop last year?
The unhoused population in the United States dropped by more than 6% in 2025, which translates to roughly 49,000 fewer people without housing.
How many people in the U.S. are still experiencing homelessness?
Both federal and independent analyses indicate that there are still nearly 700,000 people living in shelters or on the streets across the country.
What do experts say caused the decline?
The Trump administration credited immigration enforcement, shelter policy changes, and encampment crackdowns, while independent advocates cited working federal programs, softening rental markets, and disaster recovery assistance.