California homeless population reaches record high, billions of dollars in funding show no effect

California has long regarded the issue of homelessness as a top priority to address, with spending reaching $24 billion on homeless projects over the past five years. However, the latest data indicates that in 2024, the number of homeless individuals in California reached a historic high.

According to the latest data from the U.S. Department of Housing and Urban Development (HUD), there are currently 771,500 homeless individuals in the United States, with over 187,000 (24%) concentrated in California.

It is worth noting that two-thirds of California’s homeless population are in an “unsheltered” state, meaning they lack basic shelter, accounting for nearly half of all “unsheltered” homeless individuals in the entire country.

Each January, HUD requires federally funded local agencies to conduct real-time counts of specific homeless populations (point-in-time counts). However, these counts have limitations and may significantly underestimate the actual number of homeless individuals.

The Continuum of Care (CoC) is an alliance organization providing services to the homeless. The Public Policy Institute of California (PPIC) analyzed data from this organization across various regions in California and found that approximately 38% of California’s homeless population, over 70,000 individuals, are concentrated in Los Angeles County, with nearly 50,000 individuals in an “unsheltered” state.

Today, entering downtown Los Angeles, a large number of homeless individuals can be seen under bridges, on sidewalks, and along passageways.

Apart from Los Angeles County, other hotspot areas for homeless individuals in California include San Diego County (10,605 homeless individuals), Alameda County (9,450), San Francisco County (8,323), Orange County (7,322), and the homeless population in San Joaquin County is rapidly increasing.

Researchers from the Public Policy Institute of California believe that addressing the homeless issue requires both short-term support such as economic assistance and health support, as well as long-term strategies including constructing more housing. However, California has one of the lowest homeownership rates in the country, and the rise in housing prices and rents is outpacing housing construction.

Over the past five years, the California government has invested billions of dollars in supporting homeless projects and programs, yet there have been no significant results; instead, the homeless population continues to grow. This has led many to question where the funds allocated to addressing homelessness in California are being directed.

A state audit report from April of last year pointed out that to address the homeless issue, California spent $24 billion over five years and established over thirty projects, but failed to consistently track project outcomes with many expenditures ending up being unaccounted for.

The audit revealed that the California Interagency Council on Homelessness only reported once on spending related to the homelessness issue, with expenditures of at least billions of dollars lacking ongoing tracking and reliable updated spending data.

Both Democratic and Republican lawmakers in California are concerned that transparency is lacking at all levels when it comes to the homeless issue.

Analysts anticipate that California will allocate more funding toward homeless projects in the future. In addition to annual state government appropriations, voters approved a measure known as “Proposition 1” in 2024, led by Governor Newsom, called the Behavioral Health Services Program and Bond Measure.

With the passage of this measure, California will reallocate funds for behavioral health services and issue $6.38 billion in general obligation bonds over 30 years to address the housing crisis and mental health issues.

This ongoing challenge of homelessness underscores the complexity and urgency of finding sustainable solutions to support vulnerable populations and address the underlying causes of homelessness in California.