Framing
Access to safe and affordable housing is widely recognized as a human right. It is the bedrock of stability, security, and overall well-being. Unfortunately, despite California's incredible economic productivity as the 4th largest economy in the world, residents experience significant challenges trying to meet this most basic need. A combination of factors contribute to California's housing crisis and shortage of affordable housing: wages relative to housing costs, low homeownership rates, high construction costs, permitting delays, zoning restrictions, NIMBYism, and others. This situation is forcing millions to spend an unreasonable portion of their income on housing costs, move out of California, or live without a home at all. Overall, California falls short in providing affordable housing to residents and is home to the largest population of people experiencing homelessness in the United States.
Policy spotlight
* Since 2019, the state has invested over $27 billion to support local governments in providing services and housing to help prevent and end homelessness, including $3.3 billion for Homekey, $1 billion in Encampment Resolution Funding, and $4.85 billion in Homelessness Housing Assistance Program funds. * In 2023, SB 423 was passed to streamline the permitting process for building multifamily housing developments. This extends provisions from SB 35 (Wiener, 2017), which were effective in expanding affordable housing. * California voters passed Proposition 1 in March of 2024, which included $6.38 billion in funding to develop and expand behavioral health treatment, residential care settings, and supportive housing. Of this, $1.05 billion funds supportive housing for homeless veterans with mental health or substance use disorders, and $922 million supports housing for those experiencing or at risk of homelessness with behavioral health needs. * In 2024, California allocated over $91 million to support affordable housing and homelessness interventions for Native American communities. This includes $71 million for permanent rental units through the Tribal Homekey program and $20 million for culturally responsive homelessness prevention via the Tribal HHAP program.
Justice lens
* California's homeless crisis disproportionately impacts some groups more than others. Black Californians in particular experience homelessness at disproportionately high rates. Despite making up about 6% of the state's population, Black Californians accounted for over 20% of the total homeless population. * Black and Latino homeownership are both far below average homeownership rates in California, which are well below national homeownership rates. This illustrates how certain communities are excluded from the generational wealth-building opportunities associated with homeownership. * This disparity stems from systemic issues like historical racism and discrimination in housing, employment, and healthcare. These barriers create a cycle of disadvantage that makes it harder for people of color to purchase a home, leaving them more vulnerable to homelessness. * Discrimination, violence, and incarceration all compound the likelihood of experiencing a mental health or substance use issue and ultimately increase risk of homelessness for individuals. * Furthermore, incarceration also limits the housing options available, due to discrimination from landlords, laws about who can live in Section 8 housing, and individual barriers like lack of employment or savings.
Source & citation
Content on this page draws from The California Doughnut Snapshot and Report, used under CC-BY 4.0.
Aritza, A. and Kraus-Polk, J. et al. (2025). The California Doughnut Snapshot and Report. Zenodo. https://doi.org/10.5281/zenodo.17540639