Policy Brief: Homelessness and Drug Use in California

In the past decade, California has grappled with growing rates of homelessness and the intertwined issue of serious drug use. Over a similar timeframe, the state's criminal justice system has undergone major reforms, which have been accompanied by increases in dedicated funding for behavioral health services. Critics have raised concerns that these reforms have contributed to the homelessness and drug crises.

Our new report offers a data-driven examination of trends in homelessness and drug use in California. We analyze the extent to which local conditions may have contributed to homelessness within the state, and we also assess the impact of California's major criminal justice reforms.

Trends in Homelessness and Drug Use

Since 2014, California's homelessness rate has increased more than 60 percent, driven by rising rates of unsheltered homelessness-defined as people sleeping outdoors or in a place not meant for human habitation. In 2025, California saw its first decline in homelessness in more than a decade but still had the sixth-highest homelessness rate among all states and the second-highest unsheltered homelessness rate after Oregon.