New federal report underscores the need to increase funding for affordable housing and supportive services

By Betsy Montiel, legislative affairs analyst, and Caroline Grinder, legislative affairs lobbyist

A new report from the U.S. Department of Housing and Urban Development (HUD) found that roughly a third of all homelessness and half of all unsheltered homelessness occurs in California. The number of people experiencing homelessness in California increased by nearly 6% over the last year.

The information comes as organizations like the League of California Cities call on the state to increase its investments in supportive services and affordable housing. State lawmakers are currently figuring out how to plug a $68 billion budget deficit.

Cities throughout the state have stepped up their efforts to reduce homelessness and increase the supply of affordable housing. According to a 2023 study by Cal Cities, although cities have ramped up their efforts to reduce homelessness, the demand for housing and services is outpacing their efforts, straining capacity, and draining resources.

The federal findings are part of HUD’s annual homelessness report, which includes estimates of the number of people experiencing homelessness in a single night. Nationwide, homelessness increased by 12% between 2022-2023. An estimated 653,104 people experienced homelessness on a given night in 2023.

The data suggests the rise in overall homelessness is largely due to a sharp rise in the number of people who became homeless for the first time. The report also indicates that the number of individuals experiencing unsheltered homelessness has reached the highest increase since reporting began. HUD attributes this to several factors, such as changes in the rental housing market and the winding down of pandemic-era protections that prevented evictions and housing loss.

The report tends to undercount specific experiences of homelessness. For example, the count does not account for the experiences of unsheltered individuals sleeping in public restroom facilities or families whose members take turns sleeping in vehicles. Although HUD does provide guidelines for the count, how jurisdictions implement HUD’s recommendations can vary.

The report also includes several supplementary materials, including a key findings fact sheet, by the numbers report, and an overview of HUD resources and programs.