The Spring Street Brief

Episode 96: HUD's 2025 Point-in-Time Count: First Drop Since 2016

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HUD released Part 1 of the 2025 Annual Homelessness Report, delivering the first year-over-year reduction in the national point-in-time count since 2016. With 745,652 people counted as homeless in January 2025 — a 3.3% decline from 2024 — the report offers a cautious but meaningful signal for housing-focused policy. For LIHTC developers, syndicators, and policymakers, the data lands at a pivotal moment for federal appropriations debates and CoC funding allocations.

Key Takeaways:

  • 745,652 people were counted as homeless in January 2025, a 3.3% decrease from 2024 — the first annual decline since 2016.
  • Families experiencing homelessness fell 11.3%; unaccompanied youth dropped 7.9%; unsheltered homelessness declined 2.9%; homeless veterans fell 1.2%.
  • Illinois posted the steepest state-level drop at -43.6%, followed by Hawaii at -41.3% and Florida at -11.1%; California fell 2.8% and New York fell 7.9%.
  • Since 2013, overall homelessness is up 27%, unsheltered homelessness is up 36%, and chronic homelessness is up 81%.
  • An estimated 17,500 people per week entered homeless systems for the first time over the course of 2024, underscoring the sustained demand pressure on housing resources.
  • Ann Oliva of the National Alliance to End Homelessness warned that "homelessness remains a crisis" despite the positive headline, calling for sustained investment in housing-focused programs.
  • Part 2 of the report — which includes subpopulation and program-level data used in CoC funding allocations — is still pending and will be critical for supportive housing and rental-assistance-layered LIHTC deals.

    • The report is already being deployed on both sides of the federal budget debate — by advocates as proof that housing-first interventions work, and by fiscal hawks as justification for funding reductions. For LIHTC developers and syndicators with supportive housing components or projects layered with rental assistance, the upcoming Part 2 data will be the more actionable release. State-level outliers like Illinois and Hawaii signal where concentrated public investment is moving the needle — and where deal flow may follow.

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    The Spring Street BriefBy Spring Street Management Group