When you see a hobo do something extreme and unheard of that depicts a new level of crippling poverty.
"Omg, those two hobos are fighting over a cigarette's butt, that's some next level hobo shit!"
Often used within the Burning Man community, Next Year Was Better is typically used when something goes wrong, and implies that it will have been done better or more successfully next year.
The art project didn't have enough batteries to last the night. eeh, next year was better.