California recorded its largest reduction in homelessness in more than 15 years, according to preliminary 2025 data released by the state. Regions reporting this year’s figures show an estimated nine percent decrease in unsheltered homelessness, a notable contrast to national trends, where homelessness has continued to rise.
The data comes from annual point-in-time counts submitted by local Continuums of Care to the U.S. Department of Housing and Urban Development (HUD). Thirty California Continuums of Care have reported 2025 figures to date.
State officials attribute the decline to a multi-year strategy focused on expanding shelter capacity, addressing encampments, and increasing access to housing and supportive services. Governor Gavin Newsom made homelessness a central policy priority at the start of his administration in 2019.
“No one should be without a place to call home,” Newsom said in a statement. “California is demonstrating that coordinated investments in housing, shelter, and behavioral health can make a measurable difference. While there is more work to do, these early results show progress.”
California Outpaces National Trends
While homelessness increased in many parts of the country, California’s reported reduction represents the state’s largest decrease since at least 2010. State officials noted the decline occurred despite ongoing challenges related to housing costs, inflation, and delays in federal housing and assistance programs.
Long-Term Strategy and Investments
Since 2019, California has launched and expanded several initiatives aimed at reducing homelessness, including:
Homekey, a first-in-the-nation program that has created nearly 16,000 housing units across more than 250 projects, serving over 172,000 Californians.
Homekey+, which has allocated $2.25 billion to support housing for individuals with mental health or substance use challenges and for veterans.
More than $5 billion through the Homeless Housing, Assistance, and Prevention (HHAP) program to support local governments in preventing homelessness and promoting housing stability.
$1 billion in Encampment Resolution Funds, assisting approximately 23,000 individuals across 120 encampment sites statewide.
Focus on Mental Health and Housing Supply
Voter-approved Proposition 1 in 2024 expanded the state’s approach to homelessness by investing $6.4 billion in behavioral health treatment facilities and supportive housing. When fully implemented, the program is expected to add an estimated 6,800 residential treatment beds and 26,700 outpatient treatment slots.
The state has also enacted reforms to encourage housing development, streamline permitting, and reduce regulatory barriers that have historically slowed construction.
Encampment Response and Local Coordination
California has increased coordination with local governments to address encampments while connecting individuals with shelter and services. Since 2021, Caltrans has removed more than 19,000 encampments from state rights-of-way and cleared approximately 354,000 cubic yards of debris.
In 2024, the Governor’s Office also launched the SAFE Task Force to assist California’s largest cities with encampment resolution efforts. The task force has worked in several major cities, including Sacramento and Fresno, helping connect individuals to available shelter options.
Looking Ahead
State officials emphasized that the reported figures are preliminary and that full statewide data will be finalized later this year. While acknowledging continued challenges, the administration stated it remains committed to reducing homelessness through sustained investment, accountability, and collaboration with local communities.
For more information, visit www.gov.ca.gov.
