Los Angeles is facing a rise in homelessness despite significant investments aimed at addressing the issue, according to multiple sources familiar with the region’s latest Point-in-Time count. The annual count, conducted in January and expected to be publicly released soon, indicates a 3.4% overall increase in the homeless population and a 7.9% rise in unsheltered individuals living outdoors, reversing two years of modest declines.
The findings come amid ongoing criticism of Mayor Karen Bass’s administration, which has prioritized homelessness since she took office in December 2022. Bass launched the Inside Safe program, allocating nearly $100 million this fiscal year to provide encampment operations, motel rooms, interim housing, outreach, and supportive services. The program’s estimated cost is around $34,000 per participant. Additionally, the city and county together now commit close to $3 billion annually to a range of homelessness initiatives, including emergency shelters, permanent supportive housing, rental subsidies, and outreach efforts funded through programs like Project Homekey, Proposition HHH housing, Tiny Home Villages, and a recent countywide sales tax measure expected to generate over $1 billion annually.
Despite this spending, advocacy groups and political observers highlight a lack of clear outcomes and question the effectiveness of current approaches. Paul Webster, executive director of the LA Alliance for Human Rights, called the increase unsurprising and criticized the absence of dedicated agencies focused on transparency and accountability for homelessness funding. Similarly, some voices describe a “homeless industrial complex” where government agencies and nonprofits have financial incentives that may perpetuate rather than resolve the crisis.
Mayor Bass’s office attributed the rise to multiple external factors, including reductions in state and federal funding, as well as rising costs for housing, groceries, and fuel attributed to broader economic conditions. Bass also pointed to gaps in county services such as mental health and substance use counseling as significant contributors to the ongoing challenge. The mayor emphasized that homelessness in Los Angeles had declined by 13% since her administration began, highlighting efforts to move homeless veterans indoors and reduce encampments as evidence of progress.
Councilwoman Nithya Raman, chair of the City Council’s Housing and Homelessness Committee and a mayoral candidate challenging Bass, has advocated for increased investments in permanent supportive housing, rental assistance, and long-term affordable housing solutions. However, some of her initiatives, such as the $62.6 million Time Limited Subsidy program, have faced criticism for limited results in permanently housing residents.
The Los Angeles Homeless Services Authority (LAHSA), which coordinates much of the region’s homelessness response, is under heightened scrutiny following federal and local audits identifying issues related to finances, grant management, and oversight. Federal funding has been suspended temporarily while reviews take place.
As the city heads toward the November mayoral election, the latest homelessness data underscores ongoing tensions over approaches to one of Los Angeles’s most pressing social challenges. While city officials cite structural and external obstacles, critics demand more rigorous accountability and a reassessment of current strategies aimed at tackling homelessness.