Health is a difficult issue, with many disagreements between government officials and activist groups about how it should be addressed. But no matter where you stand on the issue, the numbers don’t lie—homelessness in the United States has been on the rise in recent years, increasing by 30% between 2022 and 2024 alone. According to the National Alliance to End Homelessness, rates are now at a record high in 2025, with first-time homelessness also increasing by 23% in the last few years of 2019. nationally, although its prevalence varies from state to state. While many people may equate major East and West Coast cities with high rates of homelessness, the US state that actually tops the list may come as a surprise. As shown in a new analysis from Visual Capitalist (compiled from data sets from the US Census and the US Department of Housing and Urban Development), Hawaii has the highest rate of homelessness in the country.
While the total number remains lower than many other states, it’s the actual ratio of homeless individuals to residents that makes Hawaii stand out. At 805 people experiencing homelessness for every 100,000 residents, the percentage of homeless people in Hawaii exceeds any other state. While the national average for homelessness is 227 per 100,000 people, the Aloha State’s rate is more than three times that. By comparison, Washington, DC has the next highest rate of homelessness at 800 people for every 100,000 residents, while New York is third at 795 per 100,000 residents. All other states are below 600.
Read more: The 10 Most Affordable Places to Live in California
The complex reasons behind Hawaii’s high homelessness rate
A homeless tent camp on a beach – Julia Beverly/Getty Images
As with other states with high rates of homelessness, there is no specific reason why Hawaii’s rate is so high. Instead, most authorities on the subject agree that it is rooted in a complex range of issues that require a multi-pronged approach. According to the advocacy group, Homeless Hawaii, the leading causes of homelessness include limited housing opportunities, lack of adequate employment, substance abuse, health conditions, trauma and family violence. For many homeless people, 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% of the national average.
It’s worth noting, however, that there can be flaws in the homeless count. The number of people experiencing homelessness in Hawaii (and other states) is based on a federally mandated “Point in Time” number in the US, which is based on organizations going out and counting the number of homeless people found in a single night. This process naturally has its pitfalls and does not account for people staying with a friend or in other situations where they may be hidden from public view. So data on Hawaii’s homelessness rates may not be completely accurate, just as some of the reasons behind homelessness may not be known.
The Financial Impact of Homelessness in Hawaii
Seal of the State of Hawaii on a public building in Honolulu. – Theodore Trimmer/Shutterstock
It’s not just people experiencing homelessness who are affected by their circumstances. A 2023 report by the advocacy group Hawai’i Appleseed found that the cost of welfare programs for evacuees who have become homeless in the state costs Hawaii taxpayers about $30 million a year. And while building more affordable housing helps fight homelessness, it also has a financial impact—another 2023 report from the Statewide Office of Health and Housing Solutions revealed a target cost of $50,000 per unit to build a 50-unit village, and that was considered much 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 fight it. In 2025, however, an executive order issued in August enacted stricter eligibility requirements on federal funding for programs aimed at reducing homelessness. Further complicating the issue was another directive requiring states to adhere to Trump administration policies on immigration and social issues in order to receive funding from the US Department of Housing and Urban Development for homeless housing. That was blocked by a federal judge in September 2025, but the financial path forward to address homelessness remains in limbo in the meantime. With future Medicaid cost increases, rising inflation rates, rising unemployment and other ongoing economic challenges, it appears that homelessness rates will continue to rise in Hawaii and other states, as will the financial burden on society.
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