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By Suzanne Blake
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A new report from the New York State Comptroller Office reveals New York City spent roughly as much per homeless person as the city’s median household income last fiscal year.
Newsweek reached out to comptroller's office and New York City Mayor Zohran Mamdani's office for comment on Monday afternoon via email.
Why It Matters
The data reflects a central tension in New York City’s homelessness debate: record‑high spending alongside persistent, visible homelessness. If the city is effectively spending the equivalent of a median income per homeless individual each year, critics say it raises serious questions about efficiency and accountability.
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Taxpayers are also footing the bill while many working New Yorkers struggle with housing costs, inflation, and stagnant wages.
What To Know
New York City’s per‑person spending on homelessness approaches or matches the city’s median income level, based on data from the comptroller and Census Reporter.
Looking at the city’s $368 million spending on homelessness efforts in fiscal 2025 and dividing that by the roughly 4,000 number of homeless individuals the comptroller reported the same year, that’s roughly $81,705 spent per homeless person.
Meanwhile, the Census Reporter estimated the household median income at $81,228 in New York City for 2024.
“Per‑person” homelessness spending typically reflects system‑wide costs, including shelters, medical care, mental health services, security, administration, and emergency services, rather than direct cash or housing support provided to individuals.
In his report, comptroller Tom DiNapoli wrote that "the escalation in spending driven by the increase in the unsheltered population, however, merits greater focus on where resources are going and what services are working.”
He added: “Street homelessness is a chronic problem that requires collaborative efforts to help bring vulnerable New Yorkers into shelter and out of the cold.”
Drew Powers, the founder of Illinois-based Powers Financial Group, cautioned that while the $81,705 figure comes directly from the State Comptroller’s report, the report also indicates spending items can sometimes be blended between populations.
Still, New York City consistently reports some of the highest homelessness‑related expenditures in the country, while also maintaining one of the nation’s largest shelter systems.
“The bigger questions remain. What is the right amount to spend on homelessness? What should the average household in NYC be earning? How much of this has to do with government overspending?” Powers told Newsweek. “How much is due to a lack of accessible healthcare and mental illness treatment? How much is due to an outsized need for services in this population? A lack of affordable housing? NGO grift? Red tape? I suspect it’s quite a bit more complicated than a simple comparison of two numbers.”
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What People Are Saying
X user @charliesmirkley, who has over 10,000 followers, wrote on Sunday: “NYC spends more per homeless person than the median NYC household earns. $81,705 per person in FY2025. And $81,705 is a floor. It excludes supportive housing (~$500M/yr), mental health response teams, and NYPD encampment costs. The city projects ~$97K per person in FY2026."
Former City Comptroller Scott Stringer told the New York Post on Monday: “It’s a clarion call to make sure every dollar counts. We should have better outcomes when the city spends this amount of money on homeless services. You must understand where the money is going.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “While there are an estimated 4,500 unsheltered homeless individuals in New York City, the actual population including those who use city shelters is much larger, and you have many moving in and out of these classifications that can dilute that number. Of the unsheltered population, those costs go for more than just finding a safe place to live; it can cover healthcare services for those with physical or mental ailments that can run tens of thousands of dollars in total cost.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “To me, the data reflects something larger; our cost of living in this country is rising rapidly. Healthcare and housing are the two biggest costs impacting a person’s ability to simply survive. As for New York City, the spending isn’t all that surprising. The political structure of the state tends to favor more robust social programs. Put bluntly, many policymakers view supportive housing as a cost-saving measure.”
What Happens Next
The data comparison is likely to intensify scrutiny of New York City’s homelessness budget, particularly as city officials weigh spending priorities. Lawmakers, watchdog groups, and advocacy organizations could push for clearer accounting of how per‑person homelessness costs are calculated and what outcomes those expenditures produce.
However, experts caution that the hand selected data point can oversimplify complex systems.
“There's clearly room to discuss the best way for city funds to be used to best help the problem, but the data isn't always as clear-cut as presented,” Beene said.
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