California’s homelessness crisis has reached a breaking point, with nearly 187,000 individuals living on the streets or in shelters as of January 2024, according to the Golden Together’s Ending Homelessness report. This marks a 55 percent increase over the past decade, with two-thirds of those affected being unsheltered, surviving in encampments, tents and temporary structures. Despite billions of dollars spent in recent years, the report underlines that the crisis has only worsened, prompting serious questions about the effectiveness of current policies.
Golden Together notes that California has poured money into homelessness programs for decades, yet the state now accounts for 24 percent of the nation’s homeless population and nearly half of all unsheltered individuals in the country. The financial commitment has been enormous—between 2019 and 2023 alone, the state spent $24 billion on homelessness initiatives. However, these efforts have reportedly failed to make a meaningful impact, and many critics argue that the primary approach, known as Housing First, has not delivered the intended results.
Housing First, a policy designed to provide permanent housing without preconditions, has dominated California’s strategy for years. While the concept appears compassionate in theory, the report suggests that it has largely ignored the root causes of homelessness. A 2023 metastudy found that 82 percent of homeless individuals struggle with mental illness or substance use disorder, but the current system does not require treatment for these conditions as part of receiving assistance. As a result, many people placed in housing without adequate support eventually return to the streets, perpetuating a cycle of chronic homelessness.
Adding to the challenge, the financial burden of Housing First programs has been significant. The cost of building individual supportive housing units frequently exceeds $500,000 per apartment, and in some areas, the price tag has soared to nearly $800,000 per unit. With homelessness continuing to rise, experts argue that this model is not only ineffective but also financially unsustainable in the long run.
Across the state, the impact of homelessness varies by region. Major urban centers such as Los Angeles and San Francisco have experienced sharp increases in encampments, while suburban and rural areas have seen a rise in displaced families. However, Golden Together points out that many of these families remain invisible in official statistics, as estimates suggest that 60 percent of homeless families are not counted in statewide homelessness tallies, making them ineligible for critical assistance programs.
As California grapples with the growing crisis, many advocates are calling for a fundamental shift in strategy. Instead of focusing solely on permanent housing, there is a growing push to prioritize congregate shelters and recovery-focused housing models. Unlike expensive, individual apartments, structured group shelters provide a more affordable and effective solution by offering not only a place to sleep but also access to rehabilitation services, job training and mental health care.
In response to mounting pressure, several policy changes have been proposed.
Advocates are urging state and federal lawmakers to abandon the Housing First mandate and adopt a results-driven approach that prioritizes rehabilitation and self-sufficiency. In addition, regular audits of homelessness programs could help eliminate waste and ensure that funding is directed toward effective solutions. There is also growing support for stricter public safety measures, including bans on public camping and enhanced enforcement of drug and property crime laws, while simultaneously offering individuals access to recovery-focused shelters.
The report concludes that California has the opportunity to shift its focus from short-term fixes to lasting, transformative change. By embracing a more holistic approach that integrates shelter, treatment, and accountability, Golden Together believes that the state can work toward a future where fewer people are forced to live on the streets, and those struggling with homelessness receive the support they truly need.
