The State With The Highest Homelessness Rate Might Surprise You

Homelessness is a difficult issue, with a lot of disagreement among governing officials and activist groups on how it should be tackled. But no matter where you stand on the issue, the numbers don't lie — homelessness in the United States has increased in recent years, rising 30% between 2022 and 2024 alone. According to the National Alliance to End Homelessness, rates are now at a record high in 2025, with people experiencing first-time homelessness likewise rising 23% over the last several years since 2019. It's a nationwide issue, though its prevalence varies from state to state. While many people may equate big East and West Coast cities with high homelessness rates, the U.S. state that actually tops the list may come as a surprise. As shown in a new analysis from Visual Capitalist (compiled from U.S. Census and U.S. Department of Housing and Urban Development datasets), Hawaii has the highest rate of homelessness in the nation.

Although the overall count remains lower than a lot of other states, it's the actual ratio of homeless individuals vs. housed that makes Hawaii stand out. At 805 people experiencing homelessness for every 100,000 residents, Hawaii's homelessness ratio tops any other state. While the national homelessness average is 227 per 100,000 people, the Aloha State's rate is over three times that. For comparison, Washington, D.C. has the next highest homelessness rate, with 800 individuals per every 100,000 residents, while New York places third with 795 per 100,000. All other states are below 600.

As in other states with high homelessness rates, there isn't any one specific reason why Hawaii's rate is so high. Instead, most authorities on the matter agree that it's rooted in a complex range of issues requiring a multi-pronged approach. According to the advocacy group, Homeless Hawaii, top causes of homelessness include limited housing opportunities, lack of adequate employment, substance addiction, health conditions, trauma, and family violence. For many unhoused individuals, it's a combination of these factors. It also doesn't help that Hawaii also happens to be the most expensive state to live in, with the cost of living in Honolulu alone over 80% the national average.

It's worth noting, however, that there may be flaws in the counts for homelessness. The amount of people experiencing homelessness in Hawaii (and other states) is based on a "Point in Time" count federally mandated in the U.S., which relies on organizations going out and counting the number of unhoused individuals found in a single night. This process naturally has its pitfalls and does not account for individuals staying with a friend or in other situations where they may be obscured from public view. So, the data for Hawaii's homelessness rates may not be entirely accurate, just as some of the reasons behind homelessness may not be known.

It's not just people experiencing homelessness who are affected by their circumstances. A 2023 report by advocacy group Hawai'i Appleseed showed that the cost of social assistance programs for evicted people who became homeless in the state cost Hawaiian taxpayers about $30 million a year. And while building more affordable housing helps combat homelessness, this too has a financial impact — another 2023 report from the Statewide Office on Homelessness and Housing Solutions revealed a target cost of $50,000 per unit to build one 50-unit tiny home village, and this was considered far lower than average construction costs for similar communities.

Of course, one of the main reasons homelessness rates are calculated is to gauge how much federal funding can be allocated to help tackle it. In 2025, however, an executive order made in August enacted stricter eligibility requirements on federal funding for programs aimed at curbing homelessness. Further complicating the issue was another directive requiring states to adhere to the Trump administration's policies on immigration and social issues in order to receive U.S. Department of Housing and Urban Development funding for homeless housing. This was blocked by a federal judge in September 2025, but the financial path forward to address homelessness meanwhile remains in limbo. With upcoming Medicaid plan cost increases, rising inflation rates, growing unemployment, and other ongoing economic challenges, it appears likely that homelessness rates will continue to grow in Hawaii and other states, as will the societal financial burden.