According to government officials on Friday, a "sharp rise" in the number of people experiencing homelessness for the first time contributed to homelessness in America setting a new high earlier this year.

(Photo : by FREDERIC J. BROWN/AFP via Getty Images)
According to government officials on Friday, a "sharp rise" in the number of people experiencing homelessness for the first time contributed to homelessness in America setting a new high earlier this year.

Alarming Homelessness Surge in the US

According to a U.S. study, on a single night in January, over 650,000 individuals were homeless, a 12% increase from 2022, discovered by the Department of Housing and Urban Development. Since the nation started counting the number of homeless people annually through point-in-time surveys in 2007, the figure is the greatest amount.

The survey showed that the elimination of existing programs like the eviction moratorium and increases in rental expenses resulted in thousands of Americans becoming homeless in the previous year.

Poverty increased last year as a result of the termination of COVID-era assistance programs including the extended Child Tax Credit, stimulus cheques, and other support. This problem was most severe for children, whose poverty rate increased by twofold.

HUD reported in the study that there was a 25% increase in the number of individuals who became newly homeless between the federal fiscal years 2021 and 2022. September 2022 marked the end of the fiscal year 2022.

Up until recently, the United States has been steadily decreasing its homeless population as the government concentrated especially on boosting funding to help veterans find housing. Between 2010 and 2017, there were approximately 554,000 fewer homeless persons than there were in 2010.

However, the post-pandemic years have brought about a double-whammy in terms of finances that has disproportionately hurt Americans who are more susceptible. First, the government withheld subsidies and safeguards that had been helping individuals get through the economic hardship caused by the outbreak.

Read Also: Holiday Season Could Leave Luxury Retailers Drowning in Unsold Inventory

Harvard Study Highlights Record High Tenant Cost Burdens

Second, the Harvard Joint Center for Housing Studies reports that rising rents have caused tenants' cost burdens to reach an all-time high. According to the estimate, in 2021, over nine out of ten low-income households with earnings under $15,000 spent more than thirty percent of their income on housing.

In general, housing costs are deemed unaffordable if they surpass thirty percent of a household's income. In January of this year, there were around 653,000 homeless persons.

Individual homelessness increased by over 11%, veteran homelessness increased by 7.4%, and family homelessness increased by 15.5% of the total increase.

While making up only 13% of the US population, Black people account for 37% of all homeless individuals. Furthermore, those over 54 made up more than 25% of those who were homeless.

Additionally, in every state, employees need to make more than double the federal minimum wage in order to afford a two-bedroom apartment.

The poorest Americans continue to face financial hardship due to high housing expenses. According to HUD, a growing number of Americans are rent-burdened, which means they pay more than 30% or even more than 50% of their income on rent.

Government financial help during the pandemic period decreased or terminated in 2021 and 2022 as millions of Americans faced with rising rent, growing grocery expenditures, and other necessities. 

Related Article: US Inflation Fuels $100 Million Gold Rush at Costco, Bars Disappear in Hours