Lincoln Faces Rising Homelessness Amid Housing Shortage and Budget Choices

Lincoln Faces Rising Homelessness Amid Housing Shortage and Budget Choices

By Amanda Miller

Lincoln is seeing a troubling uptick in homelessness, even as its economy remains strong. Recent reports from the University of Nebraska–Lincoln’s Center on Children, Families, and the Law show that Lincoln’s Point-in-Time count rose from 428 persons in January of 2023 to 542 in January of 2025—a nearly 20% increase over two years. Much of the strain is falling on families who once stretched thin but now can’t afford surging rents or shelter costs.

Why more people are falling into homelessness

Several overlapping factors are contributing to the rise:

  • Reduced emergency assistance — Programs that helped residents stay in their homes during the pandemic are losing funding or ending, leaving many without backup.
  • Rising housing costs — Vacancy rates for affordable units are at record lows, pushing rents up. Wages aren’t keeping pace, especially for households that depend on hourly work.
  • Limited shelter capacity — Local shelters are often operating at or near full capacity, with many being unable to take in new residents. When families double up or stay in motels temporarily, those solutions quickly break down.

The city’s recent budget and policy choices

In late August, Lincoln City Council adopted a two-year multimillion-dollar budget that excludes certain proposed funding increases aimed at homeless prevention and low-income housing supports. A motion to allocate money for tax help and another to create a one-time grant program from reserve funds both failed.

Some policymakers argue resources are already stretched across many departments, but advocates worry the decisions will make it harder for households on the brink to avoid crisis. With both shelter access and affordable housing limited, preventative support becomes more crucial.

What’s being done—and what more needs to happen

Community organizations are pushing back. Data-driven dashboards and reports, such as “Lincoln Vital Signs,” are helping residents and leaders see where needs are growing fastest—especially among children, seniors, and people working multiple jobs. Housing, early childhood care, cost of living, and food access are common themes.

Policymakers have tools at hand:

  • Boost funding for rental assistance and eviction prevention
  • Preserve and build affordable housing units at multiple income levels
  • Increase shelter capacity or flexible housing options
  • Coordinate with nonprofits to distribute aid accessibly across neighborhoods

Lincoln’s rising homelessness problem is not inevitable—but without decisive action, many individuals and families will find themselves pushed from temporary crisis into long-term housing instability.