Chicago sees rise in homelessness driven by new arrivals

Brandie V. Knazze Commissioner of the Department of Family and Support Services (DFSS) | LinkedIn

By Chicago City Wire

Jun 7, 2024

The following report was written in compliance with ordinance O2023-1011, sponsored by former Alderman James Cappleman. The ordinance aims to educate and inform members of the Chicago City Council and the public on the city’s housing and homeless systems, providing recent data and outcomes to show progress using the Seven Principles for Addressing Encampments as a framework.

The report outlines the current state of homelessness in Chicago based on year-end data from 2023 and the January 2024 Point-in-Time Count and Housing Inventory Count. It also details activities conducted by the Department of Family and Support Services (DFSS), the Department of Housing (DOH), and other agencies to engage with residents of encampments with the goal of moving those residents to permanent housing.

EXECUTIVE SUMMARY

The City of Chicago, largely through DFSS and DOH, continued in 2023 to lead the implementation of a spectrum of services and supports for people experiencing homelessness and housing instability. Throughout 2023, the city maximized its use of time-limited ARPA funding alongside city funds to continue investing in evidence-based models of crisis intervention, housing supports, and critical infrastructure improvements to meet growing needs.

Homelessness in Chicago is increasing. The city's annual Point-in-Time Count estimated 18,836 people experiencing homelessness in shelters or unsheltered locations on January 25, 2024. This represents a three-fold increase from the 2023 estimate of 6,139 people. The majority of this increase is attributed to New Arrivals from the southwest border arriving since August 2022 needing shelter and basic needs. Additionally, as pandemic-era supports have ended and affordable housing continues to decline, homelessness among non-New Arrivals is returning to pre-pandemic levels.

Homelessness in Chicago is an issue of equity. Most people experiencing homelessness are extremely low-income households earning less than 30% of area median income (AMI). Significant racial disparities exist; based on the 2024 Point-In-Time Count for non-New Arrivals, Black/African American individuals represent a disproportionate share. Specifically, 72% identified as Black or African American during this count compared to less than 30% identifying as such among all residents.