Afghanistan War veteran Tommy McKee is shown at his home in one of several camps located just outside of the John F. Kennedy neighborhood. Residents successfully blocked a non-profit's effort to create a tiny home village for veterans like McKee even though it would have been a short walk north of the homeless encampment.
Sacramento, California – California appears to be making tentative progress in one of its most persistent crises: homelessness. According to preliminary 2025 data from several major communities, the state is beginning to see early signs of a reversal in unsheltered homelessness, even as national numbers continue to climb.
Last year, the United States saw a nearly 7% increase in unsheltered homelessness. In contrast, California’s increase was just 0.45%, effectively flat despite the state being home to a significant portion of the country’s homeless population. That relative stability marks a departure from previous years, when California often led the nation in rising homelessness.
Some of the largest communities in the state are now reporting actual reductions. In San Diego, total homelessness dropped 13.5%, with unsheltered homelessness falling by 3.9%. Riverside County saw an even steeper drop in unsheltered homelessness—down 19%. And in Los Angeles County, where the crisis has drawn national scrutiny, total homelessness is expected to decline by 4%, with a 9.5% reduction in unsheltered homelessness.
These figures are based on early “point-in-time” counts conducted in January and reported locally, though they have not yet been verified by the U.S. Department of Housing and Urban Development. Still, they represent a marked shift for a state that has struggled for decades to contain its homelessness emergency.
State officials attribute the trend to a combination of increased investment, stronger accountability, and structural changes in how homelessness is managed. Since taking office in 2019, Governor Gavin Newsom has pushed through sweeping reforms, including new funding streams for local governments, overhauls to mental health services, and expanded housing initiatives.
The governor also pointed to the state’s relative performance compared to the rest of the country. In 2024, while national homelessness increased by more than 18%, California’s overall increase was limited to 3%—a lower rate than in 40 other states. California also posted the nation’s largest decrease in veteran homelessness and reported progress on youth homelessness.
Despite those gains, Newsom was careful to frame the results as a starting point, not a victory. “Together, we are turning the tide on homelessness,” he said in a statement, “but we have more work to do.”
In San Bernardino County, total homelessness dropped by 10.2%. San Diego County saw a 7% drop overall, while the Bakersfield region reported a modest 2.3% decrease.
California’s future success will depend not just on these early signs, but on whether the downward trend can be sustained—and whether it reaches the communities that need it most.
