Homelessness Is Down in California and Across the Country, Says New Federal Report

by Marisa Kendall
This article was originally published by CalMatters

The number of people with nowhere to call home decreased both in California and nationwide last year, according to a long-awaited federal report.

The data, showing the first decrease in homelessness in years, provided fuel for activists challenging the Trump administration’s narrative that current homelessness policies are failing and need to be overhauled.

There were 181,934 homeless Californians counted last year – a 2.8% decrease from 2024, according to the new federal report. Overall, the country saw a 3.3% drop in homelessness, marking the first decrease since 2016. Nationwide, an estimated 745,652 people are homeless.

Those numbers come from the U.S. Department of Housing and Urban Development, which released its annual homelessness report to Congress on Friday after an unexplained five-month delay. As the country’s main barometer for how efforts to combat homelessness are working, the report plays an important role in allocating funding and shaping policies – and is a major political tool.

The Trump administration used the report to promote its policies, including its crackdown on immigration and efforts to direct funding away from permanent housing. Meanwhile, the National Homelessness Law Center was quick to point out that the decrease in homelessness happened while former President Joe Biden was still in office.

“Homelessness is down because President Biden funded things that we know work, like housing and support,” law center spokesperson Jesse Rabinowitz said in a news release. “Sadly, the Trump administration is doing everything they can to backtrack on this progress.”

The federal government downplayed the small one-year decrease in homelessness, instead focusing on the fact that homelessness has increased 27% nationwide since 2013. That’s when the country started following a practice called “housing first,” which moves people into housing right away instead of requiring them first to get sober or meet other conditions.

“The data is clear that the status quo of ‘housing first’ has failed to meaningfully reduce homelessness, resulting in crisis levels of people living on the streets,” said HUD Secretary Scott Turner. “HUD is restoring its programs to advance recovery and self-sufficiency and to ensure that taxpayer-funded benefits serve American families.”