REPORT: Community Level Policy Is Impacting Homelessness and Drug Abuse in California

September 23, 2026

A new Public Policy Institute of California report examines how various policy decisions have influenced the state's homelessness and drug crises, finding that different factors play interconnected roles. The research reveals that counties investing more heavily in permanent housing capacity experienced greater reductions in homelessness, while areas with significant incarceration decreases following Proposition 47 saw homelessness increases. The 2014 ballot measure, which downgraded certain drug and property crimes from felonies to misdemeanors, appears to have contributed to approximately 7,000 additional unsheltered homeless individuals and increased serious drug use by 7-8 percent between 2015 and 2019.

Who is affected

Approximately 7,000 additional people experiencing unsheltered homelessness (attributed to Proposition 47)
People with drug addiction needing treatment services
Counties across California dealing with homelessness
Individuals previously incarcerated or involved in the criminal justice system
People at risk of homelessness
Residents in counties with higher rental costs

What action is being taken

California is making major investments in housing and behavioral health services
State and local agencies are evaluating whether investments are reaching people most at risk
State and local agencies are evaluating whether newer policies, including Proposition 36, are effectively connecting people with treatment

Why it matters

This research matters because California has experienced a dramatic 60% increase in homelessness since 2014, with the state ranking sixth-highest nationally in overall homelessness and second-highest in unsheltered homelessness. The findings demonstrate that policy decisions have measurable consequences on vulnerable populations, showing that housing investments can reduce homelessness while certain criminal justice reforms may have unintended negative effects. Understanding these relationships is critical for policymakers to design effective interventions that address both homelessness and drug crises while ensuring that vulnerable individuals maintain access to necessary services and treatment.

What's next

State and local agencies should continue evaluating whether investments are reaching people most at risk and whether newer policies, including Proposition 36, are effectively connecting people with treatment.

Read full article from source: The San Diego Voice & Viewpoint