June 2025,
Between 2007 and 2014, the number of people experiencing homelessness in California declined from 140k to 114k. But, after that, homelessness began accelerating (Figure 1), even as billions of dollars in federal, state, and local spending poured in to address the problem. Several factors have contributed to the persistence of homelessness in California despite these investments, including a continued dearth of shelter beds, high and rising housing costs, and changes in policies around drug use.
In this brief, we will discuss these challenges that have characterized the last decade of homelessness policy and the unintended consequences of certain policies. We will then provide an overview of the complex organizational and funding structure of efforts to combat homelessness — a key factor undermining their oversight and impact. Lastly, we will examine potential policy changes that could affect the trajectory of homelessness policy going forward and policy recommendations.