New SF Study – Housing Placement Can’t Keep Pace with People Losing Housing

Housing affordability challenges and growing economic inequality in the Bay Area have led to consistently high levels of homelessness in San Francisco over the last decade. The severe lack of affordable housing and sharp increases in rent continue to push more people into homelessness each year because housing costs have rapidly outpaced wage growth.

The new San Franciso Report found that 41% of people lived outside of the city before becoming homeless, up from 29% in 2022. While job loss is reported as the leading cause of homelessness at 22%, drug and alcohol issues remain a close second (19%).

Between the 2022 and 2024, San Francisco helped people exit homelessness at a faster rate than ever before. Over 7,500 clients exited homelessness through permanent supportive housing, rapid re-housing, and housing problem solving interventions including flexible financial assistance and family reunification services. In addition, the City provided emergency financial assistance for over 7,000 households at risk of homelessness through prevention programs to keep people in their homes.

However, exits from homelessness have not been able to keep pace with the inflow of people who become newly homeless or return to homelessness throughout the year. For every person able to exit homelessness through the City’s Homelessness Response System, approximately three people become homeless.  When the need exceeds available local resources, people unable to resolve homelessness on their own may remain homeless for long periods of time.