Understanding Homelessness

Solving Homelessness Starts with Understanding It.

The causes of homelessness and what we do to solve it.

Housing & Services
= The Solution

The Bay Area is facing one of the nation’s most severe housing affordability and homelessness crises. The demand for affordable housing outpaces supply, while economic uncertainty puts pressure on already vulnerable households, leaving many people one unexpected expense away from losing housing. Without intervention, such as housing and supportive services, homelessness will rise.

What Causes Homelessness?

Learn About the Causes: Four Primary Shifts

Homelessness, as we know it today, is the result of four socioeconomic shifts.

Job Loss & Low Wages

  • The first shift started in the 1960s, as the American economy lost 5 million manufacturing jobs.
  • About 25 million other associated jobs were lost between 1970 and 2005.
  • Real hourly wages fell for all workers during this time.
  • Workers lost jobs or saw significant decreases in earnings.

Affordable Housing

  • Between 1970 and 1993, the nation lost nearly one million affordable housing units.
  • The federal budget for housing programs for low-income renters plummeted by almost 60 percent.
  • The Section 8 program went from serving 517,000 households to fewer than 150,000.
  • So, as fewer households could afford housing, there was much less affordable housing to go around.

Dissolution of the Safety Net

  • “Welfare” benefits declined by almost half, shrinking so much that they no longer served as a safety net.
  • People had low-pay jobs (or no jobs), fewer affordable housing units, and no safety net.

Deinstitutionalization

  • In the 1960s and ‘70s, mental health institutions shut down and were not properly replaced.
  • Instead, up to 500,000 people never stabilized in the places to which they’d been released.
  • The cause of homelessness was not mental illness; it was the dissolution of a flawed mental health system.

These shifts in the 1980s produced – for the first time – a sizable and growing number of people who had no housing, no options, and were living and dying on the streets.

State of Bay Area Homelessness

Helping to Solve the Problem – But the Job is Not Done.

Homelessness is down in most Bay Area counties. But the continued high cost of housing and the looming results of federal budget cuts reveal that the job of truly ending homelessness is far from over. Here are some facts and figures:

First, the good news:

  • Homelessness in six Bay Area counties reported a sizeable decrease this year, dropping from a combined total of 25,700 in 2024 to 23,000 homeless people in 2026.
  • Also, Santa Cruz County’s count dropped by 20% in a year - from 2024 to 2025.

However, major concerns loom:

  • Progress is stagnant in some communities.
  • San Mateo County’s homelessness count is slightly up this year.
  • The numbers in Sonoma and Napa were essentially unchanged from 2024.
  • We have yet to fully feel the negative effects of federal budget cuts levied a year ago - which might cause a backslide over the next few years.
  • Affordability and income inequality remain major issues: Bay Area residents have to earn $50-to-$70 an hour to be able to afford a modest two-bedroom apartment.
  • The average rent for a one-bedroom San Francisco apartment is $4,300 – and rising every month.

Bay Area statistics are trending in a positive direction. But further cuts to budgets and resources, along with any shifts away from proven successful strategies, will threaten the substantial progress we’ve recently made in reducing homelessness.

Abode's Evolving Plan to Solve Homelessness

Where We've Been, Where We're Going

When Abode formed, we thought providing shelter and services would end homelessness. But we soon found that long-term housing was the real solution. Homelessness stems from many structural factors that impact people with individual vulnerabilities the most. We need ALL solutions to solve homelessness.

Our strategy to achieve that has three main pillars:

More Action
  • We need to serve more people.
  • Build more housing.
  • Partner with more property owners and managers to get people in housing.
  • Invest more in prevention.
  • And grow our well-established outreach teams, interim housing, time-limited subsidies, and permanent housing programs.  
Greater Influence

As the largest family of housing agencies dedicated to solving homelessness in the Bay Area, we have a moral responsibility to:

  • Use our influence, track record, and expertise to make a difference in the communities we serve.
  • Advocate for legislation that advances our mission, including laws and policies that remove the causes of homelessness.
Higher Excellence

We are investing in better systems to:

  • Continue attracting and retaining high-quality staff.
  • Serve our participants as well as possible.
  • Ensure our financial backbone stays strong.
Homelessness Understood

Our Approach to Understanding Homelessness

We believe housing ends homelessness. However, this housing crisis is decades in the making and will require great effort and innovative strategies to fix.

At Abode, we
will continue to:

  • Have consistent focus on new housing, working to address housing inequities through every possible lens.
  • Provide supportive services that meet people wherever they are.
  • Manage and build the places they call home.
  • Advocate for laws and policies that advance our mission of solving homelessness.

Want to Learn More?

Explore our in-depth document to homelessness for a closer look at the causes, realities, and solutions –
and how we can work together to address it.

Read the Full Guide

Working together to show that Housing Ends Homelessness.

Our work stems from decades of learning how the homelessness crisis started – and its solutions.
Learn about our seasoned staff’s strategies to solve this difficult issue.