This Blue State’s Homeless Population Exploded Despite Crazy Spending [WATCH]

Colorado has experienced one of the sharpest increases in homelessness in the nation since 2020, with a 90% rise that places the state fourth nationally, according to a new report released by the Common Sense Institute (CSI).

The findings highlight a growing crisis centered in the Denver-Boulder-Aurora metropolitan area, where local governments have spent hundreds of millions of dollars to combat homelessness—most of it focused on “housing first” strategies. In 2023 alone, $405 million in local, state, federal, and nonprofit funding went toward addressing homelessness in the region.

Despite the high spending, Denver recorded a record-high 9,977 individuals experiencing homelessness in 2024, based on point-in-time counts.

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Of those, 2,233 individuals participated in the city’s “All In Mile High” housing-first program, which cost approximately $69,413 per person.

An additional $16 million was spent on individuals who became unsheltered again after exiting the program, the CSI report stated.

“This report makes clear that homelessness is growing fastest in cities most reliant on housing-first strategies,” said Dustin Zvonek, a CSI research fellow on homelessness and former Aurora City Council member.

“We need to step back and look at the broader data — ask what’s working, what’s not, and focus on implementing policies that deliver measurable, sustained improvements.”

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Colorado’s per capita rate of homelessness now stands at 3.14 per 1,000 residents, placing it ninth nationally.

The only states with higher percentage increases in homelessness since 2020 are Vermont (212%), Illinois (148%), and Rhode Island (121%) — all states with Democrat-controlled governments.

CSI’s analysis questions the long-term effectiveness of the “housing first” model, which prioritizes permanent housing without requiring sobriety or mental health treatment as a precondition.

The report suggests that many individuals experiencing homelessness are “unhouseable” without first addressing underlying issues such as substance abuse and severe mental illness.

By contrast, El Paso County, which includes the more conservative city of Colorado Springs, has implemented a “work-first” approach.

That county saw its homeless population decline by 12% in the last year, with 1,146 individuals counted in its latest point-in-time survey.

Aurora, which also utilizes a work-first strategy, has seen more stable or improving numbers compared to the Denver metro area.

Both cities have emphasized job placement, substance-abuse recovery, and temporary shelter solutions over immediate permanent housing.

The CSI report further notes that as long as large sums of public money are directed toward housing-first models without accountability for outcomes, the trend may continue.

The report highlights concerns that the approach may be inadvertently encouraging chronic homelessness by removing incentives for recovery, work, and reintegration into society.

In addition to substance abuse, CSI points to the high prevalence of serious mental illness among the homeless population.

Historically, such individuals were cared for in mental health institutions, but legal and policy shifts in recent decades have limited involuntary institutionalization, leaving many untreated on the streets.

The homeless crisis in the Denver-Boulder area mirrors trends in cities like San Francisco and Los Angeles, where similar housing-first policies have led to highly visible homelessness despite record spending.

As Colorado continues to grapple with the issue, questions remain over whether current strategies can meet the scope of the problem.

The Common Sense Institute has called for a re-evaluation of state and local policies, including potential reforms that prioritize sobriety, treatment, and employment.

The Denver region’s surge in homelessness has sparked growing public concern, especially in areas that were once considered stable, middle-class neighborhoods.

Critics argue that current approaches have failed to deliver lasting results and that a more comprehensive plan—including mental health interventions and work requirements—may be necessary to reverse the trend.

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