The homeless population in Phoenix increased modestly over recent years, rising from approximately 6,900 individuals in 2021 to 7,330 in 2025, even as the city significantly expanded spending on homelessness services. Officials and advocates attribute the growth to a combination of factors including illness, family conflicts, evictions, and a persistent affordable housing shortage that complicates efforts to find permanent housing for those experiencing homelessness.
Phoenix has directed substantial resources toward addressing the crisis, allocating roughly $42 million—more than 10 percent of its American Rescue Plan funds—toward shelters and facilities such as the Safe Outdoor Space, which currently provides around 1,600 shelter beds compared to 200 in 2020. In addition, the city established the Office of Homeless Solutions to better coordinate homelessness efforts. Approximately 55 percent of Phoenix’s homeless residents are now sheltered, a significant increase reflecting the city’s expanding capacity.
Still, challenges remain significant. The housing shortage in Arizona is acute, with an estimated deficit of 270,000 homes and only 24 available units for every 100 low-income renters. Amid high demand, Phoenix ceased accepting new Section 8 housing voucher applicants in 2023. Longtime advocates point to these limitations, with Amy Schwabenlender of Keys to Change describing Phoenix as having “been behind on housing for a long time.” She notes that for every individual who secures permanent housing, two others lose theirs, a dynamic compounded by Arizona’s anti-tax political climate that restricts funding for public housing development.
The debate over spending priorities continues. Some conservatives argue resources would be better directed toward addressing root causes such as mental health care and substance-use treatment. Devon Kurtz of the Cicero Institute contends some individuals in shelters resist offers of help with jobs or housing, advocating for a stricter focus on treatment programs. Conversely, advocates emphasize the immediate lifesaving role of shelters and call for expanded investment in prevention, job training, and social services. Tom Murphy from the National Alliance to End Homelessness analogized the situation by saying there is “a hole in the ship, and we are bailing it as fast as we can, but no one is patching the hole."
The city also faces legal and public health challenges related to homeless encampments. Business owners have sued over a drug-plagued outdoor camp known as “The Zone.” Heat-related deaths among the homeless remain high, with more than 600 fatalities recorded in both 2023 and 2024, although the figure dropped to about 430 last year.
Personal stories highlight the ongoing struggles. Justin Tellez, 22, who uses a wheelchair and has epilepsy, has lived at the Safe Outdoor Space for 18 months after aging out of foster care. While Medicaid covers his medical bills, he has been denied Social Security disability benefits twice. Though living in a tent is uncomfortable, Tellez values the relative stability and hopes for permanent housing. Similarly, John Solano, who found shelter, continues to wait months or years for a permanent home.
Experts like Nicole Newhouse of the Arizona Housing Coalition caution that rapid spending on additional shelter beds is not always well integrated with prevention and comprehensive social services. Council member Anna Hernandez pointed to recent federal cuts to Supplemental Nutrition Assistance Program (SNAP) benefits as a factor forcing some residents to choose between rent and food, further exacerbating housing instability.
As Phoenix grapples with a growing homeless population amid a complex set of social and economic pressures, city officials and advocates alike acknowledge that solutions will require coordinated efforts across multiple fronts, including housing, health care, and social support systems.