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California homelessness drops 4% in 2025 — But budget cuts could derail progress

Jacob Shelton July 14, 2025

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Harold Hicks, who is homeless, rests at the Barton Springs Pool spillway on Tuesday April 30, 2024, with his only remaining belongings - a bicycle, blankets and two backpacks - the day after a police officer took almost all of his belongings.

Los Angeles, California – For the second year in a row, homelessness in Los Angeles County has declined—a promising sign in a region long considered the epicenter of California’s housing crisis. According to the 2025 point-in-time count released Monday, the total number of people experiencing homelessness fell 4% across the county and 3.4% in the city of Los Angeles. The number of unsheltered individuals—those living outside, in tents, vehicles, or makeshift structures—saw even sharper drops: down 9.5% countywide and 7.9% in the city.

Officials say it’s not a fluke. It’s the first time since the annual count began in 2005 that L.A. has recorded consecutive year-over-year declines. And this time, the changes are statistically significant. “Reducing homelessness is now a trend,” said Paul Rubenstein of the Los Angeles Homeless Services Authority (LAHSA), which oversees the regional response to homelessness.

Behind those numbers are a series of targeted efforts: Mayor Karen Bass’s Inside Safe initiative, the county’s Pathway Home program, and a coordinated push to clear encampments while offering shelter placements. Over the past two years, the unsheltered population has fallen by 14% in the county and nearly 18% in the city.

But those gains come with caveats. As more people move indoors into hotels, motels, and temporary shelters, the number of sheltered but still unhoused residents has increased. This year, sheltered homelessness rose 8.5% countywide and 4.7% in the city. Roughly 34% of the county’s homeless population now sleeps in shelters, up from 25% historically.

That shift suggests that while Los Angeles is succeeding at moving people off the streets, it’s still struggling to move them into permanent housing. Rubenstein acknowledged as much, citing federal cuts and local budget tightening as barriers to maintaining the current pace. In particular, reductions in Section 8 rental assistance and state funding for rehousing services have made it harder to secure long-term homes for those already in shelters.

The good news is that LAHSA moved 11,146 people into permanent housing last year—a 23.5% increase over 2023. But the agency itself has come under fire, with recent audits criticizing a lack of financial oversight. In response, county officials voted in April to shift hundreds of millions of dollars into a new housing department set to launch next year.

Whether that change improves outcomes or adds more bureaucracy remains to be seen. Councilman Bob Blumenfield expressed skepticism, saying the ratio of spending to impact is “not sustainable.” Others, like Councilwoman Nithya Raman, emphasized the stakes: “Unsheltered homelessness isn’t just visible. It’s dangerous.”

For now, the latest count offers cautious hope. But with federal cuts looming and local budgets tightening, keeping this momentum—and turning it into long-term housing stability—will be the next challenge.

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