The song speaks from the point of view of American Idiot's main character, Jesus of Suburbia, and is a moderate mid-tempo song characterized by somber and bleak lyrics.
Armstrong wrote the song about his time in New York City, about "feeling alone" and trying to take power from that fact.
The song's title is from a James Dean poster in which he is walking through New York with an overcoat on.
Armstrong felt the song fit nicely with the album's story-line, which is about "going away and getting the hell out, while at the same time fighting their own inner demons."
In response to Hurricane Katrina and the popularity of "Boulevard of Broken Dreams", Green Day donated all of the iTunes proceeds from this song for the year to the American Red Cross for Katrina aid efforts.