California reports one of largest drops in homelessness in past year, Hud reports California experienced a nearly 3% decrease in its unhoused population in 2025, ranking it among the top states for reductions. This data aligns with national trends showing a 3% decrease in homelessness, the first since 2016. However, differing perspectives exist on the reasons for the decline and the future of anti-homelessness policies.

• California reported a nearly 3% decrease in its unhoused population in 2025, with 181,934 individuals recorded.
• This decrease places California among the top five states with the largest reductions, alongside Illinois, Hawaii, Florida, and New York.
• Nationally, the homeless population decreased by 3% from 2024, marking the first decline since 2016.
• The Trump administration downplayed the decrease, attributing it partly to reduced homelessness in ‘Sanctuary Cities’ and emphasizing a long-term increase since 2013.
• Advocates noted the success of programs like the Emergency Housing Voucher program but expressed concern that Trump administration policies, including proposed cuts to housing programs, could reverse progress.