California reports nearly 3% drop in homelessness in 2025

California recorded a total unhoused population of 181,934 in 2025, an almost 3% decrease from the previous year, according to a new report from the U.S. Department of Housing and Urban Development. The state ranked among the five with the largest decreases. Illinois recorded a 44% drop, Hawaii a 41% drop, Florida an 11% drop, and New York an 8% drop.

National and state context The national homeless population fell 3% from 2024 to 745,652 people counted on a single night in January 2025. This marked the first national decline since 2016. California and New York recorded the largest populations of unsheltered people in 2025. The data comes from the federally mandated point-in-time count of people in shelters and on the street.

Policy responses and statements The California governor announced a model ordinance in May 2025 for cities and counties to address persistent encampments and allocated $3.3 billion in voter-approved funding for housing and drug treatment programs. The U.S. Department of Housing and Urban Development secretary stated that the data showed the prior approach had failed to reduce homelessness and that the department was restoring programs focused on recovery and self-sufficiency.

The department also linked the 2025 decrease to reductions in sanctuary cities. The CEO of the National Alliance to End Homelessness said much of the progress resulted from housing resources available in 2024 and warned that proposed cuts to permanent housing programs could return at least 170,000 people to the streets.