Progressive Urban Governance and Taxation

A new report from the New York State comptroller finds New York City has more than tripled spending on unsheltered homelessness since fiscal year 2019, from $102 million to nearly $368 million in FY 2025, even as the number of people living on the streets rose 26% to 4,504. That equates to roughly $81,700 in spending per unsheltered person in 2025, slightly above the city’s median household income—a rough benchmark that highlights the scale of public outlays but is not directly comparable to earnings. The report underscores that New York’s shelter system is unusually large by national standards, with about 97% of its homeless population in shelters, compared with roughly 70% unsheltered in Los Angeles, the next‑largest homeless hub. The findings land as Mayor Zohran Mamdani pushes a $127 billion budget that includes a proposed freeze on rents in roughly 2 million stabilized apartments, higher taxes on wealthy residents and corporations, and a possible 9.5% property tax hike if Albany doesn’t act, drawing warnings from some economists that rent freezes and heavier taxes could further discourage housing investment and tighten supply. The clash over whether this level and mix of spending and regulation can actually reduce homelessness is feeding a broader national argument over progressive urban policy, housing affordability, and how to measure the effectiveness of massive public expenditures.