US Homelessness: World's Largest Economy Sees An 18% Spike In The Count Of Unhoused

The United States of America or simply the US, is the biggest economy in the world, with a total GDP of around USD 29.17 trillion, according to the International Monetary Fund (IMF). China, placed second on the list, is worth around USD 18 trillion.

US's Homelessness Increases

The US has also witnessed far better growth numbers than other developed countries. Despite all this a tango of multiple factors has taken the magnitude of homelessness in the country to new heights of lows.

As per reports from the country's federal agency, the nation's overall homelessness or count of individuals unhoused, has increased by a concerning 18 per cent.

At the beginning of the 24th year of the new millennium, the US had more than 7,71,000 people, who did not have a home or shelter.

This has now increased to 7,71,480. This is much higher than the previous year's homeless when a total of around 6,53,104 were unhomed.

From Inflation To Federal Schemes

This surge in homelessness in the largest and one of the richest countries is being attributed to inflation, stagnant wage growth and larger housing, particularly, affordable housing crisis.

In addition, another contributing factor is the dearth of buffer, that pandemic era scheme by the US federal government provided. This is evidenced by the drop in overall homelessness during the pandemic years, ie 2020-2022. In 2021, homelessness stood at 3,80,630, nearly half of the count of 2024.

The USA has a population of just over 330 million.

Although the federal agencies have not signalled the direction this phenomenon will take in the coming year, there are certain factors that one needs to take into consideration.

The Road Head

At first it is the larger global and domestic conditions, from inflation to stagnation, that could result in exacerbation of the existing conditions, the incoming Trump administration may also play a role in the matter.

The Republican administration would look to reduce government size and its overall expenditure. In addition, Trump's lieutenant Elon Musk's promise of trimming USD 2 trillion from the country's expenses does no t serve any direct hope of homelessness being on the administration's top agenda.

It is to be noted, that in the same period, Dow Jones has increased in value by 14.07 per cent. Nasdaq has risen by 31.38 per cent. In addition, S&P has risen in value by 25.18 per cent.