Homelessness has deep historical roots shaped and shifted by public policies, economic crises, system racism, and evolving social attitudes from colonial poor laws to today’s housing crisis and the criminalization of poverty.
During colonial times, early American attitudes toward poverty were shaped by English Poor Laws and the belief that some people were “worthy” of help while others were not.
The original Poor Laws made it illegal to let anyone starve, requiring local communities to care for those in need.
In 1834, the system was replaced with the Poor Law Amendment Act, which offered aid to the poorest men and women if they entered workhouses—harsh institutions where they were forced to perform exhausting and often degrading labor. These policies and the values behind them, heavily influenced how early American settlers treated people experiencing poverty and homelessness.
Strict settlement laws sorted people into different groups based on why they were poor, and treated them differently depending on whether their poverty was seen as “deserved” or “undeserved.”
The first documented cases of homelessness appear in colonial records from the 1640s. European settlers were displacing Native Americans and resulting conflicts on the frontier also led to homelessness among Native Americans and Europeans.
In 1736, New York established the first almshouse. Poor houses and almshouses began opening across the colonies—many with rules and work requirements. During the Industrial Revolution and the transition to new manufacturing processes, there was a mass movement to the cities. This caused a new urban poverty that often resulted in homelessness, panhandling, and run-ins with the police.
Economic downturns in the 1830s and 1850s caused many to lose their jobs and homes. By the 1830s, tens of thousands of homeless people lived in police stations by night and streets by day.
In the 1850s, youth homelessness emerged when adolescent boys left home to look for work and ease the financial burden on their families. Many ended up homeless.
As people moved west during the Gold Rush and Civil War veterans traveled in search of new opportunities, expanded train routes made it easier to move from place to place. But with too few jobs to go around, many were forced to survive by seeking temporary work and scavenging for food and clothing. During this time, the terms bum, tramp, and hobo emerged to describe people experiencing homelessness. Unhoused people were not limited to major cities but were also found in small Midwestern towns and growing western cities.
From 1900 through the Depression, homelessness remained a widespread issue. Municipal lodging houses emerged during this time, highlighting the ongoing demand for shelter and basic services.
In 1927, the Mississippi River Flood devastated communities from the midwest to the Gulf of Mexico, displacing more than 200,000 African Americans in Mississippi, Louisiana, and Arkansas. Many were forced to live in overcrowded relief camps for extended periods.
Before the Great Depression, local philanthropic groups served meals and built shelters. They often perpetuated the notion of “deserving” and “undeserving,” made judgements, and blamed people for their poverty. Faith-based organizations also began to open in poor parts of large cities and provided shelter and meals.
During these years, tensions rose among the faith-based organizations and philanthropic groups, and public funded programs regarding the best way to address homelessness.
Federal Response to Homelessness
The prevalence of homelessness increased significantly during the Great Depression. In response FDR launched the first large-scale federal initiative to address the crisis. Prior to the Federal Transient Services (FTS), aid for homeless individuals was handled locally, often inconsistently and inadequately. The FTS marked a radical left shift in policy and a major milestone in the federal government’s role in homelessness. It provided shelter, job training, meals, medical and dental care.
At its peak in 1934, the FTS served over 400,000 people annually. It was designed to be a temporary measure to restore public confidence. In 1935, the FTS was dismantled despite its success. During this time, the face of the homelessness remained largely older white men, disabled, dependent on welfare, living in single-room occupancy hotels (SROs) or cheap boarding houses in the poorest neighborhoods, including Skid Row districts.
After the Great Depression and WWII, much of the country returned to work. However, Homelessness did not disappear—it became increasingly concentrated in cities, where affordable housing, shelters, and social services were available.
In the 1960s, many skid row areas were demolished to make way for highways, government buildings, and upscale developments. This led to the widespread displacement of low-income residents pushing many into poverty.
From the 1970s to the 1990s, homelessness increased significantly as public policies shifted. Federal funding for affordable housing was slashed, and many state-run mental hospitals were deinstitutionalized without adequate community-based care. SRO housing declined sharply and many veterans returning from the Vietnam and Persian Gulf wars became homeless.
In the 1980s, budgets for public housing were cut, arguing that faith-based entities could take care of welfare families. Many were left without a safety net and homelessness began to be understood as a broader societal issue rooted in systemic failures rather than individual problems.
In 1987, the U.S. Interagency Council on Homelessness was established to coordinate a federal response and improve collaboration across government agencies.
During the 2000s, the number of homeless people continued to increase due to the affordable housing crisis. Many states began to develop plans to end homelessness. Prior to this, the dominant approach was the “Staircase Model”, which required individuals to meet certain goals—such as sobriety or employment—before progressing to independent housing.
In the 1990s, the Housing First model was introduced, which reversed this approach by providing housing without preconditions. Backed by growing research, Housing First gained momentum in its effectiveness in helping people with chronic health or behavioral health challenges.
During the Great Recession of 2007-2009, there was a big increase in foreclosures, evictions, and unemployment, which led to increased homelessness.
In 2010, the U.S. Interagency Council on Homelessness developed the “Opening Doors” plan to end homelessness leading to measurable progress, particularly in reducing veteran homelessness.
In the late 2010s, there was a growing awareness of the disproportionate number of people of color experiencing homelessness worsening financial instability, increasing housing insecurity, and making it harder for many people to exit homelessness who faced rent burdens and a shortage of affordable housing.
In June 2024, the U.S. Supreme Court ruled that cities could enforce bans on sleeping and camping in public places, effectively paving the way for increased criminalization of the homelessness. Adding to this policy shift, the Trump administration signaled its intent to move away from housing-focused solutions toward punitive, enforced-based
approaches—making a dramatic turn in federal homeless policy.
Conclusion
The history of homelessness is lengthy and fluctuating. Since the early colonial period to today, changes in policies and programs have yet to end the homelessness crisis in the U.S.
The number of homeless people continues to increase from year to year. Strict to more liberal approaches have been tried. The currency punitive approach to forcing the homeless off the streets, into shelters, incarceration, and the threat of federally funded homeless camps will only exacerbate the problem.
Solutions
- Develop prevention programs (identify individuals before they become homeless).
- Target homeless groups based on need (families and children, youth, aged).
- Target federal and state funding based on need (nonprofits, organization, agencies).
Provide resources and services based on need (housing, rehabilitation).