End Homelessness Fund Methodology

The 2023 AHAR by HUD indicates a point-in-time estimate of 653,104 individuals experiencing homelessness in January 2023, of which 396,494 are sheltered and 256,610 are unsheltered. This represents a 3% increase from the previous year, with a 7% rise in unsheltered homelessness. California, New York, and Florida have the highest levels of homelessness, while Wyoming, North Dakota, and South Dakota have the lowest (HUD, 2023).

The NAEH's State of Homelessness report complements the AHAR by offering a state-by-state analysis. This report highlights significant geographic disparities, with California alone accounting for 28% of the nation’s homeless population despite comprising only 12% of the U.S. population (NAEH, 2023). New York City, Los Angeles, and Seattle have the highest rates of homelessness among cities, while cities like San Jose, Minneapolis, and Pittsburgh have among the lowest (USAFacts, 2023a).

Urban areas, particularly major cities like Los Angeles and New York, bear a disproportionate burden of homelessness. According to USAFacts, Los Angeles alone has over 78,000 homeless individuals, making it the city with the highest homeless population in the U.S. (USAFacts, 2023a). These cities face unique challenges, including higher living costs, greater economic disparities, and limited affordable housing. The concentration of homelessness in urban areas is further exacerbated by the influx of individuals seeking employment and services.

USAFacts provides detailed demographic data, highlighting significant disparities among various groups. African Americans and Native Americans are disproportionately affected by homelessness, reflecting broader systemic issues of racial inequality (USAFacts, 2023b). African Americans represent 13% of the general population but account for 40% of the homeless population. Additionally, veterans represent a substantial portion of the homeless population, necessitating targeted interventions to address their specific needs. The demographic data underscores the importance of culturally competent and inclusive approaches to homelessness interventions.

Effective strategies for reducing homelessness focus on comprehensive, evidence-based interventions that address both immediate and long-term needs. The Housing First model is a key strategy that provides stable housing without preconditions, significantly improving housing stability and reducing emergency service usage, thereby saving community resources. Additionally, rapid rehousing programs offer short-term rental assistance and support, demonstrating effectiveness in swiftly moving individuals into permanent housing and decreasing the duration of homelessness.

Seen as a crucial and proven intervention, Permanent supportive housing (PSH), combines affordable housing with voluntary support services to address the complex needs of chronically homeless individuals. Research consistently shows that PSH enhances housing stability and health outcomes while reducing public service costs. Studies have also highlighted the effectiveness of PSH in promoting long-term stability for individuals with mental health and substance use issues.

Other Housing First strategies, such as rapid rehousing, focus on providing temporary rental assistance and support services to quickly transition individuals and families into permanent housing. Evidence indicates that rapid rehousing reduces the length of time people experience homelessness and increases their likelihood of maintaining stable housing. These programs emphasize the importance of swift intervention to prevent the detrimental effects of prolonged homelessness.

In addition to housing-focused interventions, creating coordinated and integrated systems is essential. Coordinated entry systems and data-driven decision-making enhance service delivery and resource allocation, ensuring that individuals receive the appropriate support promptly. These systems-level approaches are critical in addressing the diverse and interconnected challenges faced by homeless populations.

By prioritizing permanent supportive housing and other supportive Housing First strategies, we can create a comprehensive fund focused on organizations providing proven and sustainable approaches to reducing homelessness and supporting vulnerable populations.

Homelessness imposes significant economic and social burdens on the United States and individual states. Nationally, the cost of homelessness includes expenditures on emergency services, healthcare, and criminal justice. For example, emergency room visits and hospitalizations are substantially higher among homeless individuals, leading to increased healthcare costs. States with high levels of homelessness, such as California and New York, face additional challenges in allocating resources for public safety, health services, and housing programs. Addressing homelessness can alleviate these burdens, resulting in more efficient use of public funds and improved public health outcomes.

Given the comprehensive analysis of homelessness in the United States and the understanding of where organizations are succeeding and struggling, prioritizing regions for focused interventions should be based on the severity of homelessness, the potential for impactful interventions, and the capacity of local organizations.

Based on the criteria above and the analysis, Charity Navigator chose to focus its initial fund list on the following priority regions:

1. California:

   • Justification: California has the highest number of homeless individuals, accounting for 28% of the nation’s homeless population. The state has implemented successful strategies such as the Homekey program.

2. New York:

   • Justification: New York, particularly New York City, has one of the highest rates of homelessness. The state has robust systems in place but continues to face significant challenges that require ongoing support.

3. Florida:

   • Justification: Florida ranks third in terms of homelessness. The state has regions with high rates of homelessness but also has shown success in certain intervention programs.

4. Washington State:

   • Justification: Seattle has one of the highest rates of homelessness among U.S. cities. Washington state has active programs that can be supported and scaled.

5. Texas:

   • Justification: Texas has diverse regions with varying levels of homelessness, and cities like Austin and Houston have implemented innovative solutions that could benefit from additional support.