California's unsheltered homelessness decreased by approximately 9% in 2025, marking the state's largest reduction in more than 15 years, according to preliminary data released by Governor Gavin Newsom's office.
The decline bucked national trends showing continued increases in homelessness across the country. The data, derived from standard U.S. Department of Housing and Urban Development reporting methods, was based on information from 30 Continuums of Care conducting annual point-in-time counts.
"I made homelessness a top priority in 2019 with my eyes wide open — knowing we had to take on a broken system that was failing far too many people," Newsom said. "The strategies we've put in place are working, and they're turning this crisis around — but we're not done."
California became the first state to make homelessness a top priority when Newsom announced the focus during his 2019 State of the State address. Since then, the state has invested billions in programs including Homekey, which has created nearly 16,000 homes across 250 projects, and more than $5 billion through the Homeless Housing, Assistance, and Prevention program.
Additional initiatives include $2.25 billion through Homekey+ for individuals with mental health or substance use challenges and veterans, and $1 billion in Encampment Resolution Funds that have helped 23,000 individuals across 120 encampment sites.
In 2024, voters approved Proposition 1, a $6.4 billion Behavioral Health Bond expected to create 6,800 residential treatment beds and 26,700 outpatient treatment slots. The state also updated conservatorship laws for the first time in 50 years and created a new CARE court system for people struggling with untreated mental illness.
Since 2021, Caltrans has removed more than 19,000 encampments on state right-of-way and collected approximately 354,000 cubic yards of litter and debris.
The announcement came despite what the governor's office described as federal headwinds, including delayed HUD homeless assistance grants and proposed eliminations of assistance programs.
Edited by SMDP Staff