Denver has spent nearly $2 billion over the past three years trying to tackle its homelessness crisis with horrific results, says a new report from the Common Sense Institute.
The group conducts this study every year to track the number of homeless people and how much is being spent to help them.
From 2021 to 2023 alone, $1.9 billion was set aside for homelessness initiatives in the Denver metro area. That’s a 61% jump in spending, skyrocketing from $465 million to $749 million in just a few years.
Kelly Caufield of the Common Sense Institute put it bluntly: “Since 2016, there has been a 58 percent increase in metro Denver’s unhoused population.”
This issue has become a hot topic in local elections and neighborhood talks. Caufield noted it’s an issue that “pulls at our heartstrings and challenges our compassion.”
The number of homeless people in Denver has also shot up dramatically. In 2016, the count was 5,728 people. By 2023, it had grown to 9,065. That makes Denver the tenth-worst city in the U.S. for homelessness.
After taking office in July, Denver Mayor Mike Johnston declared a state of emergency over homelessness and promised to house 1,000 homeless people by the end of the year.
Meanwhile, the neighboring city of Aurora took a different approach focused on mental health and actually saw a drop in its homeless count this year—by 40 people.
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Life on the streets is getting worse, said Caufield: “More children are unhoused, mortality rates are higher than the average population, and Denver Health’s spending on homeless care has risen 34 percent in the last three years.”
Denver has been focusing on a “housing first” strategy, which involves buying or renting hotel rooms for the homeless. Each room costs about $80,000, according to the study.
Plus, the city is thinking about spending an additional $11 million on tiny homes and other immediate housing options.
Here’s why these numbers matter: They tell a very human story of struggle and tragedy. One in three homeless individuals in Denver are living on the streets, the worst it’s ever been, says the Common Sense Institute.
Over the last six years, the rate of people living without shelter has soared by 247%. The number of newly homeless people has increased by 240%, and the number of long-term homeless folks has jumped by 305%.
Shockingly, the report also found that 15% of the homeless in Denver are kids, which is a 73% increase compared to last year.
In 2022, a record number of homeless people died in Denver—226 in total. The number one cause was drug overdoses, which made up 56% of those deaths. “The drug overdose rate is over 20 times higher among unhoused individuals than the general population,” said the study.
Also, Denver Health, the city’s healthcare system, spent $245 million on homeless care in 2022 alone. People without homes are using more healthcare services, making an average of 4.1 visits per person in 2022, up from 3.5 visits in 2019.
These local trends reflect a troubling national picture. A Wall Street Journal report shows that homelessness in the U.S. has surged by 11% in just one year.
Now, almost 600,000 people are living on the streets across America. That’s the biggest yearly increase since the federal government started keeping track in 2007.
So, what’s next? With billions of dollars already spent and more lives at risk, finding effective solutions has never been more urgent. It’s definitely time for a new strategy. Throwing money to supply housing is clearly not working.
