California sees largest drop in homelessness in 15 years, with unsheltered count down 9% in 2025

California’s homelessness declined by the largest amount in more than 15 years in 2025, according to preliminary data released by Governor Gavin Newsom’s office. The release said unsheltered homelessness fell by roughly 9% in regions that reported 2025 numbers, while homelessness continued to rise nationwide. The figures are preliminary annual point-in-time counts calculated from data reported to the U.S. Department of Housing and Urban Development (HUD), using HUD’s standard reporting approach and data from 30 Continuums of Care.

The governor’s office credited the decline to state strategies that help more people access shelter and address encampments. In a statement included in the release, Newsom said he made homelessness a top priority in 2019 and that “No one in this country should be without a place to call home.” He said the strategies “are working” but that “we’re not done.” These statements are the governor’s own assessments.

The release also addressed federal policy, which it described as creating “significant federal headwinds.” It stated that the Trump administration had added bureaucracy to food and healthcare assistance for low-income families, delayed HUD homeless assistance grants, attempted to block investments in permanent supportive housing, and proposed eliminating programs that help people get back on their feet. The release characterized these actions as threats to California’s progress. Those characterizations are the state’s position and have not been independently assessed in this report.

The release listed state investments since 2019. These included the Homekey program, which it said has created nearly 16,000 homes across 250 projects and reached over 172,000 Californians; $2.25 billion through Homekey+ to serve individuals with mental health or substance use challenges and veterans; more than $5 billion appropriated for Homeless Housing, Assistance, and Prevention (HHAP) grants to local jurisdictions; and $1 billion in Encampment Resolution Funds, which it said helped 23,000 individuals across 120 encampment sites move out of homelessness.

On mental health, the release cited a long-standing shortfall of 7,000 behavioral health beds in California. It said voters approved Proposition 1 in 2024, which authorizes a $6.4 billion Behavioral Health Bond for treatment settings and housing with services for veterans and people experiencing homelessness. When fully awarded, the release estimated, this funding would create 6,800 residential treatment beds and 26,700 outpatient treatment slots. The release also described updated conservatorship laws and a CARE court system that creates court-ordered plans of up to 24 months for people with untreated mental illness, often alongside substance use challenges.

The release said the governor issued an executive order urging local governments to clear encampments and connect people with support, using a state-tested model that it said addresses encampments humanely and gives people adequate notice and support. This approach reflects a commitment to protecting vulnerable neighbors who have no secure place to stay (Proverbs 31:8-9). In August, the governor announced a SAFE Task Force for encampments in California’s ten largest cities. The release said the task force had addressed encampments in San Francisco, Los Angeles, Long Beach, Sacramento, and Fresno within a few months, connecting dozens of people with shelter. It also said Caltrans has removed more than 19,000 encampments on state right-of-way since 2021 and collected approximately 354,000 cubic yards of litter and debris.

Source: Read the original report