Major cities in the U.S. with extensive government-funded public housing units have substantially reduced their homeless populations and shown much better results than in the Los Angeles region, which is far behind in investing in public housing projects, according to a USC study released on Thursday, Dec. 12.
The USC Homelessness Policy Research Institute study found that between 2017 and 2020, the Los Angeles region — which included Los Angeles County and the Anaheim-area in Orange County — had far more unsheltered homeless and was second-to-last in public housing units compared to several major U.S. cities.
The Los Angeles region had 350 individuals per 100,000 residents of unsheltered homeless, more than three times higher than New York’s rate of unsheltered homeless, which was 100 per 100,000 residents. The Los Angeles region’s rate of homelessness was exponentially higher than that of Chicago, Philadelphia and Houston.
The study, sponsored by United Way of Greater Los Angeles, found a correlation between more public housing and reduced unsheltered homeless. A second finding showed that housing-choice vouchers given to homeless individuals to move into private motels or apartments at reduced rents are “unlikely to substantially reduce homelessness” due to red tape and landlords who do not accept vouchers.
The Los Angeles area had the second-lowest concentration of public housing units among five large cities studied, with 1,300 federally-subsidized units per 100,000 residents, as compared to New York’s rate which was twice that of the other four cities. Philadelphia’s and Chicago’s rates of subsidized housing exceeded 1,500 per 100,000 residents.
“The upshot is that metropolitan areas with higher concentrations of federally-funded public housing exhibit lower rates of unsheltered homelessness,” the report concluded.
And with less public housing, solving L.A. County’s homeless problem will be much more difficult, if impossible, according to the study.
Measure A, a one-half percent sales tax passed by voters in November that will produce $1.1 billion a year for homeless services, will increase funding for publicly financed housing projects. In particular, the Los Angeles County Affordable Housing Solutions Agency (LACAHSA) will receive 36% of Measure A funds for building public housing and for preventing more people from becoming homeless.
LACAHSA, created in 2022, is modeled after similar initiatives in New York, San Francisco and Singapore that scale up housing production and preservation.
“If we ever want to move the needle, we must build more homes,” said Long Beach Mayor Rex Richardson, who chairs the LACAHSA board of directors.
“This report really shows, when you build and concentrate publicly financed housing you show a lower concentration of homelessness. There is a direct correlation,” he said.
The report hints that if more public housing floods the market, rents in general will start to go down, increasing affordability for all residents and releasing some of the market pressure driving up rents. But a large increase in the supply of affordable housing is needed to affect rental market pricing.
Richardson said the group is working on a plan to partner with all 88 cities in the county. Removing barriers and creating partnerships are key, he said. “When we build housing, it creates union jobs in construction and more opportunities for people to live in dignity.”
Jared Schachner, a principal author of the study, agreed that more housing is needed. While some projects have been built with state and federal funds, future projects may face roadblocks under the administration of President-elect Donald Trump if he begins deporting illegal residents — because many work in construction.
“Looking at concerns around deportation of immigrant labor, who are the construction workers that will build all of this,” Schachner said in an interview. And Trump intends to place tariffs on imported goods, which could include steel and lumber. “And maybe the cost will spiral upward in terms of construction materials,” he added.
Schachner noted that some proposed homeless housing projects in the region have faced protests and pushback.
“Look at what is going on in individual neighborhoods. There seems to be NIMBYism as they put up a lot of resistance,” he said.
Richardson said LACAHSA can’t force cities to build affordable housing, but it can work in partnership with them and help provide funding.
Another problem with the local approach to moving homeless people indoors is the use of vouchers, Schachner said. The study found that housing-choice vouchers are riddled with red tape, excluded from higher-priced housing and often rejected by landlords. This approach “is unlikely to substantially reduce homelessness due to program design and implementation deficiencies,” the study concluded.
Too often, those who are given vouchers — which lower rental rates in the private market — don’t understand how to fill out the application. And prior convictions, low credit scores, or a mental or physical disability may prevent them from getting housing, the study found. “Hesitation among some landlords when it comes to renting to voucher holders may further constrain voucher programs’ impacts,” the study concluded.
The study suggests that Los Angeles, L.A. County and other entities using housing vouchers fix these problems. A case in point is in Finland, where there is minimal paperwork, making it easier to apply, the study found.
In Finland, a housing voucher can be used in more neighborhoods. Sometimes, the housing is subsidized by giving the voucher directly to the renter, so the landlord or owner doesn’t even know they are renting to a homeless person or renting to a subsidized household, said Schachner.
“I would like to see that system used in L.A.,” he said, adding that the region needs a better voucher system and more public housing. “I think we need to do both — as quickly as possible,” Schachner said.