The Cost of Solving Homelessness in Seattle: $400 Million

It’s "dramatically higher" than any number under discussion, and not even close to what the city will raise with its new tax on large businesses.

1 minute read

May 17, 2018, 10:00 AM PDT

By Katharine Jose


Seattle Homeless

Wonderlane / Flickr

Monday, the Seattle City Council passed a measure that will tax large businesses (those that gross more than $20 million per year) $275 per employee per year; though the amount is less than it was in the original proposal, the implementing the "head tax" will raise an estimated $45 million to address the very serious housing crisis in the region.

It’s not a small sum, but it’s a fraction of the $400 million the consulting firm McKinsey recently estimated that the city would need to spend to house all its homeless citizens; that number, writes David Kroman at Crosscut, is “dramatically higher than any dollar amount under serious discussion either in Seattle City Hall or in King County Council chambers.”

“In addition to the dollar estimate,” Kroman goes on, “the report found strong correlation between rising rents and the rising homeless population.”

Seattle is only one of many American cities with very high rents and an increasingly number of people unable to afford them, and only one of several that have tried to find new revenue streams  or additional funds to address the issue.

Wednesday, May 16, 2018 in Crosscut

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Grandparents sitting on bench with young girl and boy, girl holding ball and boy holding ukelele.

New Mexico Aging Department Commits to Helping Seniors Age ‘In Place’ and ‘Autonomously’ in New Draft Plan

As New Mexico’s population of seniors continues to grow, the state’s aging department is proposing expanded initiatives to help seniors maintain their autonomy while also supporting family caregivers.

15 minutes ago - Source NM

White Waymo self-driving car with camera and sensors mounted to front driver's side mirror.

USDOT Waters Down Self-Driving Car Regulations

The agency is reducing reporting requirements for autonomous vehicles and cars with self-driving features, prompting concern among safety advocates who say transparency is essential to the safe deployment of AV technology.

1 hour ago - Wired

Bronze or metal Native American mask sculpture in park in Minnehaha County.

‘Minnesota Nice’ Isn’t so Nice When You Can’t Find a Place to Live

The Economic Development and Housing Challenge Program can help address the scourge of homelessness among Indigenous people.

2 hours ago - Minnesota Reformer