Newsom touts drop in homelessness, but San Diego faces shelter shortage
Mar 14, 2026
While state leaders say homelessness is declining across California, some organizations in San Diego say their reality on the ground tells a different story.
Earlier this year, California Governor Gavin Newsom announced the state recorded its first statewide drop in unsheltered homelessness in mo
re than 15 years. But local providers say the need for shelter and services in San Diego continues to far outpace available resources.
The San Diego Housing Commission (SDHC) recently laid off more than 30 employees—about 14% of its workforce. During a March 13 meeting, leadership said the cuts were driven by shifting funding priorities from the federal government.
“We don’t make any decisions like this lightly,” SDHC CEO Lisa Jones said during the meeting, describing the layoffs as a “difficult step” needed to maintain long-term assistance programs for tens of thousands of families.
During that very same meeting, SDHC outlined data highlighting the growing gap between people seeking shelter and the beds available.
According to the commission, 4,015 people were referred for shelter in February. Only 181 were able to be accommodated, which the commission said is a roughly 5% completion rate.
For organizations working directly with people living on the streets, those numbers reflect a persistent shortage of shelter options.
“From our vantage point, it is not reduced,” said Drew Moser, executive director of the Lucky Duck Foundation.
Moser said the statewide drop cited by the governor may reflect a modest improvement after years of significant increases in homelessness.
“Nine percent reduction might be all well and good, but a reduction from what?” he said, referencing the sharp spikes seen in recent years. Moser added that locally, the gap between demand and available shelter remains severe.
“The reality in San Diego County is nine out of every ten requests for shelter go unfulfilled,” Moser said.
Unlike the housing commission, the Lucky Duck Foundation does not rely on government funding. The nonprofit operates entirely through private philanthropy and has been working to move people off the streets for more than two decades.
Moser said one growing concern is the number of older adults experiencing homelessness.
“About 3 in 10, about 30% of the unsheltered population is over the age of 55 and almost half of them are falling onto the streets for the very first time in their lives purely for economic reasons,” said Moser. He also said that “about half” of the chronically homeless population suffered from homelessness as kids.
Even with funding challenges affecting some organizations, Moser said the situation could improve depending on how local governments respond. He believes that cooperation between city and county leaders will be critical to closing the widening gap between funding and services.
Meanwhile, Governor Newsom recently announced nearly $2 billion to expand mental health and addiction treatment programs statewide. More than $170 million of that funding is expected to go toward projects in San Diego, including a new behavioral health campus planned for the Midway District.
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