Homeless shelters are under constant strain amid an escalating affordable housing crisis

CEO of People Serving People Hoang Murphy says a persistent lack of affordable housing and reduced federal aid have left family shelters operating at peak capacity in areas like Uptown and downtown Minneapolis.

"I think with the challenges in the economy, I think we are seeing those needs increase," Murphy says. "We're also seeing more reliance on the state and county supports to keep their heads above water."

He says some of the problem stems from a direct disconnect on the topic of funding for shelters with city leadership.

"It has not been a priority of this council or of the mayor, and I would love to hear that that has changed," Murphy says.

According to a statement from a spokesperson for Minneapolis Mayor Jacob Frey, this is an issue they are now focused on after Operation Metro Surge, and preventing homelessness is their number one priority.

"To date, the City has invested $3.8 million for emergency rental assistance, and we continue to work in partnership with all local and state leaders, understanding that there is an urgent need for housing at all levels now more than ever," Frey's office explains. "In our latest budget cycle (fiscal year 2026), the City allocated $2 million to help support local shelters. At the end of 2025 and earlier this year, we helped open a total of 126 new shelter beds."

But, according to Murphy, the county remains the sole municipal financer for family-specific shelters despite the rising demand, and that's a problem.

Hennepin County does provide a School to Housing program, centering around how school staff might have some of the best insights into which students, and their families, need extra support.

Launched about a year ago, the program connects homeless and highly mobile families with school-aged children to county housing navigators. So far, School to Housing has served 455 families with services and rental assistance, with nearly $2 million going directly to support rent.

Families struggle to find housing

A significant driver of family homelessness in Minneapolis is "doubling up," where families live with friends or relatives due to economic strain. An estimated 55% to 75% of homeless families fall into this category, meaning they are frequently uncounted in official physical shelter tallies.

That's another reason Twin Cities shelters are noting that this "invisible family homelessness crisis" has their spaces overwhelmed and struggling to meet demand.

The issue only increased after Operation Metro Surge, the federal government's immigration crackdown in Minnesota.

"Minnesotans really showed up for each other during Operation Metro Surge, but now that it's summer, and those school pressures, what we've seen is that mutual aid has gone down," adds Murphy. "And what that means is that then there's going to be more reliance on traditional spaces like our shelter."

He says it's a problem that's keeping "family homelessness" hidden from view.

"Summer is actually a time when family homelessness can be easier to hide and it can be more difficult for families to seek services," Murphy explains.

He says local shelters need more support from the city to be able to continue their work.

One of the reasons both Frey and the Minneapolis City Council looked at changing how evictions are handled in the city, something St. Paul has also done, is the increase in people not being able to pay their rent in the city. But it's actually a statewide issue.

Minnesota saw 14,921 eviction filings in the 12 months ending March 2026 — 1.7 percent above the 2017–2019 monthly average of 1,222 filings. The state has been above that pre-pandemic baseline for four consecutive months (since December 2025).

The median home price in Minnesota sits at approximately $360,000 to $362,000. But in the metro area, it's $380,000 to $400,000, highlighting the struggle for some to even put a roof over their head. Those numbers have jumped, increasing from 25-30% just since 2020.