The mayor made the announcement at a new facility called New Moms being built on the West Side for women and children.
Under a new plan, access to support services will be increased across the city for the homeless.
The city is partnering with Catholic Charities to save money and to provide more help.
"Forty percent more young people who are homeless are now going to get a bed, education, job training and the capacity they need to move on in their lives," said Mayor Emanuel.
The mayor says the plan will help make sure many homeless young people don't become the next generation of homeless adults.