Addressing Housing Needs Across the State
Read time: 13 minutes
We’re facing a severe housing crisis in California, and United Ways across the state are taking a variety of approaches to help address the issue in their communities. Here’s an overview of the challenges, why California United Ways are taking action, and some of the approaches across the state.
The California Housing Crisis
Housing costs occupy a disproportionate share of most family budgets in California, and that is particularly true for families with low incomes and people of color.
The US Department Housing and Urban Development (HUD) considers households spending 30% or more of their income “housing burdened.” According to our Real Cost Measure study, 40% of California households, over 4.3 million, spend more than 30% of their income on housing. This percentage jumps to 58% when we look at households who fall below the Real Cost Measure, or what it takes to cover basic cost of living in the state. Even further, the 10% of California households living below the Federal Poverty Level (on which much government assistance is based, and far lower than the more realistic Real Cost Measure) report spending a staggering 81% of their income on housing, leaving very little room to cover other basic needs such as food, child care, and transportation. According to the California Office of Environmental Health Hazard Assessment, the percentage of low-income households spending more than half their income on housing is increasing. It’s a problem across the entire state.
Share of Income Reported Spent on Housing by Households under the Real Cost Measure
Percents of Households Paying at least 30% of Income on Housing
There is a significant shortage of affordable housing in most communities across California. Housing help continues to be the number one referral request from Californians contacting 211. In the past year, about 35% of the over 2 million 211 service requests in California have been related to housing and shelter, with 40% of those looking for emergency shelter, 32% seeking rent assistance, and 18% requesting low-cost housing resources.
Most of these Californians are working (of the 3.7 million households who fall below the Real Cost Measure in California, 97% have at least one working adult), but their wages aren’t enough to sufficiently cover the cost of living, including housing.
Since 2020, California rent rates and home ownership costs have both increased more quickly than income. According to the National Low Income Housing Coalition’s Out of Reach study, Californians would have to work 96 hours per week at minimum wage ($16/hour) to afford a modest one-bedroom rental at HUD’s Fair Market Rent. The financial burden of purchasing a home—historically the most accessible way for people to build wealth in the U.S.—is even greater than that of renting. According to the California Legislative Analyst’s office, while wages have increased by 21.5% since 2020, California rents have increased by 26.3%, and home payments for bottom-tier homes (those with values in the 5th to 35th percentile range) have increased by 89.5%, making buying a home nearly twice the cost of renting in California.
Ivonne Sonato-Vega shared that, even with two full-time incomes, it’s difficult for her family and many others she knows to afford the cost of living in her community of Santa Rosa. "What we get paid is not enough to live," she said. "California right now is just so expensive. I think the biggest challenge that I've seen in our community has been cost of living. Rent, housing. I've known a couple of people that have had two families live in a two- or three-bedroom apartment just to be able to pay for a roof over their head."
Long-running exclusionary lending practices and policies like redlining have resulted in structural discrimination and cost burdens that still impact people with disabilities and Black, Latine, and Indigenous households today. Even after the Fair Housing Act of 1968 outlawed many of those practices, housing discrimination remains a real problem, according to the National Fair Housing Alliance’s Fair Housing Trends Report.
Unfortunately, for many families, an emergency health expense or a missed mortgage or rent payment can easily lead to eviction and homelessness. A recent study by the U.S. Federal Reserve found that 32% of U.S. adults nationally would not be able to cover a $500 emergency expense using only their savings, and 18% would not be able to cover an emergency expense of just $100 from savings. Pandemic-era eviction protections and rental assistance programs kept many people housed from 2020 until the protections ran out in 2022, at which point we saw levels of evictions and homelessness jump throughout the country; according to CalMatters, eviction filings in many of the most populous California counties surpassed pre-pandemic levels at the end of 2023.
The 2024 Point in Time Count found nearly 186,000 Californians are unhoused, up 8% from 2022. Homelessness across the state has increased by about 40% over the past six years.
Homelessness impacts Californians’ health, wellbeing, and educational and employment opportunities as well as becomes a source of trauma. This creates a vicious cycle that is difficult to escape and causes longer-term challenges and barriers to moving up.
In addition to the harm caused to those experiencing homelessness, it also costs the public far more for someone to be homeless than it costs to help someone stay housed.
According to Homelessness in Orange County: The Costs to Our Community, a collaborative report by Orange County United Way and partners, access to supportive housing for all people experiencing chronic homelessness in the county would cut the cost of care for these individuals in half, saving more than $42 million per year in Orange County alone. The 2022 San Joaquin County Costs of Homelessness Survey Summary Report found that providing permanent supportive housing for all individuals experiencing homelessness in the county would save at least $12 million. Imagine those savings amplified across the state.
California United Ways Approaches to Affordable Housing
United Ways across the state are addressing both homelessness and housing in varied ways, such as:
- Working with rental property owners to get community members with housing vouchers into affordable housing
- Providing navigation and case management for community members who are eligible for or have housing vouchers to access housing and stay housed
- Building, or working with partners who build, affordable housing and permanent supportive housing
- Providing information and resources to families facing housing needs through 211 and beyond
- Advocating for policies that mitigate homelessness and improve access to housing
- Convening community members, organizations, and public entities to grow community understanding of and collaboration around housing needs and solutions
- Funding community organizations working to address housing and homelessness
What follow are just a few examples of the work and impact in each of these areas.
Helping People with Section 8 Vouchers Secure Housing
Housing choice vouchers, also referred to as Section 8 vouchers, are a federal government program to help subsidize housing for those with low incomes. After waiting a long time to get their voucher, too many Californians still have challenges finding and securing housing with them, and too many vouchers—and the federal funds that go with them—go unused.
To combat this, several California United Ways have been working to help those with vouchers navigate the housing market and secure housing.
Two such programs are Orange County United Way’s WelcomeHomeOC and United Way of Ventura County’s Landlord Engagement Program. Taking similar approaches, though tailored for their communities, these programs have taken a holistic approach to increasing voucher utilization, implementing work like:
- Providing voucher holders with housing navigation services, partnering with organizations to talk to clients about options and attend viewings and lease signings, and covering costs like security deposits, application and holding fees, and furnishings
- Building connections with landlords and incentivizing them by providing bonuses for renting to voucher holders and covering lost income that might come from any delays related to voucher requirements, like inspections
- Ensuring newly housed residents receive the help they need to stay housed for the long-term
“This program is a win-win for everyone involved. It provides sound business benefits to property owners while at the same time, a rewarding opportunity to better the community by helping end homelessness in Orange County.”
— Ernie Schroeder, WelcomeHomeOC property owner
“Navigating Ventura County California's rental application process and the very limited supply of affordable housing was a difficult and frustrating task that I could not have accomplished alone. [Thanks to this program,] I was able to get into a clean, decent, and quiet apartment. I'm grateful for the assistance provided by United Way.”
— Todd, a veteran who secured housing with support from United Way of Ventura County’s Landlord Engagement Program
These programs have worked.
Since WelcomeHomeOC’s inception in 2019, Orange County United Way has housed more than 1000 community members, 71% of whom remained stably housed after 18 months. While state and national voucher success rates for 2019 were at a dismal 55%, recent Orange County Housing Opportunities Committee data showed that 80% of vouchers issued in Orange County have been leased up. Additionally, a housing authority in Orange County has one of the highest Foster Youth to Independence (FYI) voucher utilization rates in the nation as a result of their partnership with WelcomeHomeOC.
In the four years since their program’s inception plus expansion into homelessness prevention work in early 2024, United Way of Ventura County has helped 782 community members get housing or stay housed, with a 97% retention rate and not a single eviction.
Even better, following successes like these as well as research showing the central role housing plays in health outcomes, California’s new whole-person care initiative, CalAIM (California Advancing and Innovating Medi-Cal), has made it possible for opted-in Medi-Cal plans across the state to cover many of these expenses and services.
Now, Orange County United Way is also coordinating agencies and support to help bridge any additional gaps in the state-provided services. This new program, Whatever It Takes, has helped 393 people resolve their housing or homelessness crisis and gain housing stability in its pilot phase and recently received funding to scale the program for the next two years to help an additional 2,400 community members.
Several other California United Ways have also seen opportunities to support affordable housing in their communities through CalAIM’s housing navigation and landlord incentive options. United Way California Capital Region’s housing navigation program includes housing transition services, deposit assistance, and sustainability plans. In just one year, the program has helped house 170 people with CalAIM benefits and has expanded to support both Sacramento and Yolo Counties, with more expansion plans in development.
Building Housing and Improving Temporary Housing Facilities
Several United Ways are addressing housing needs in their community by building, or funding the building of, affordable housing as well as funding temporary shelters and shelter improvements.
United Way of Greater Los Angeles’ Affordable Housing Initiative brings private funders together with minority-led housing developers to share their expertise and resources. Together, they streamline financing, shorten construction timelines, provide supportive services for tenants, and offer safe, stable homes to county residents with low incomes in their communities of choice. The initiative has reduced development costs by 40%, reduced construction time by 50-75%, and maintained rents at $1,000 or less. In fiscal year 2023, United Way of Greater Los Angeles created 592 affordable housing units. United Way of Greater Los Angeles’ Shelter Improvement Initiative also invests funds in shelter sites across the county to create safe and dignified spaces for people experiencing homelessness, such as implementing trauma-informed design elements and creating spaces that promote healing and comfort.
United Way of Northern California’s tiny homes project has had a big impact in a short time. In partnership with the City of Redding, United Way of Northern California built and maintains an eight-unit transitional micro shelter site, where people in their community can live in a safe space and receive support transitioning from living on the streets into permanent housing. Since the micro shelters opened in March 2023, 11 of the 12 individuals who have exited the program have successfully moved into temporary or permanent housing, and in a show of support, the city recently extended United Way of Northern California’s lease of the space for the micro shelter community for two more years.
United Way Bay Area’s Housing Justice Grants build equitable pathways to prosperity by supporting innovative solutions to fight homelessness and address the lack of affordable housing. In their 2024 fiscal year, United Way Bay Area awarded $1.2 million to 40 local grassroots housing justice organizations. In addition to other important work, the grants funded 68 new affordable housing units in their 2023 fiscal year.
Supporting Californians Navigating Housing Needs
In addition to direct housing support and policies to support systemic change, United Ways across the state provide many levels of direct and indirect support to their community’s housing needs. Some examples:
- Many United Ways across the state operate and fund 211, a 24/7/365 service to support community members through crises as well as in finding support resources of all kinds—including housing resources.
- Inland Southern California United Way leverages their 211 program and offers emergency and transitional housing assistance, plus support services for everyday household needs, to help community members stabilize and find long-term homes. Last year, they distributed more than $2.4 million to support 974 community members with rental assistance, 822 households with utility assistance, and 105 community members in securing permanent housing. As part of this work, Inland Southern California United Way has programs to support San Bernardino County community members who are likely eligible for disability benefits and who are experiencing or at risk of homelessness as well as an adult reentry grant to provide rental assistance to those previously justice-involved in Riverside and San Bernardino County.
- Northern Santa Barbara County United Way and Inland Southern California United Way provide coordinated entry to streamline the way community members experiencing or at risk of experiencing homelessness access resources and services, from assessment to housing navigation through housing retention.
- United Way of Santa Barbara County's Resiliency Grant program provides one-time assistance to help families cover essential expenses—such as rent, healthcare, and transportation—following unexpected financial challenges. Partnering exclusively with local case management organizations for this program ensures that clients receive ongoing support to foster greater household stability and resilience.
- United Way of Greater Los Angeles’ Student Success Fund supports community college students experiencing financial hardships, including the high proportion of community college students who are housing insecure.
- Several United Ways across the state provide school supplies annually to students experiencing homelessness.
- Many United Ways throughout California have facilitated the distribution of emergency food and shelter grants to support organizations addressing crucial food, shelter, and utility needs, as well as county rent and utility assistance.
- United Way Bay Area’s Emergency Assistance Network collaborates with local partners to provide safety net resources to prevent community members from falling into homelessness and assist those experiencing emergency situations.
- Kings United Way has served as the lead administrator of the Kings Tulare Homeless Management Information System (HMIS) since 2007, helping them assess the depth of homelessness in the region and provide a more accurate picture of the homeless community in Kings and Tulare counties. United Way of Northern California also administers the HMIS in their region, tracking and coordinating care delivery for those experiencing homelessness.
Shaping Policy
Local charitable initiatives to increase housing supply and get individuals into available housing will only go so far. The housing crisis also needs to be addressed through systemic change and supportive policies and programs at all levels of government. California’s United Way network advocates for such policies at the state and federal level, and many local United Ways similarly advocate and educate community members around local policy change. For example:
- United Ways of California co-sponsored AB 653, which was signed into law in September, to help more Californians with vouchers get housing. California United Ways also support ballot measures, like Proposition 5 in the November 2024 election, and sponsor policies that present good opportunities to help Californians keep or access housing.
- United Way Bay Area advocates for policies and local efforts that place equity at the forefront, address historical disparities contributing to the area’s racial wealth gap, enhance the affordable housing and permanent supportive housing supply, improve access, and mitigate displacement. In just their 2023 fiscal year, United Way Bay Area advocated for five affordable housing policies that passed!
- Orange County United Way advocates for housing solutions and services necessary for solving homelessness and convenes advocates and partners to support the development of more permanent supportive housing in the county. In fiscal year 2023 alone, Orange County United Way’s housing advocacy added 415 housing units across the county—including 251 supportive housing units—and they trained hundreds of new community housing advocates.
- United Way of Greater Los Angeles’ Everyone In harnesses community voices to advocate for policies that increase access to supportive and affordable housing. In addition to educating and empowering community advocates, wins include more than 87,000 people housed, more than 11,000 housing units added, and more than $6 billion in government funding unlocked for homelessness. In November 2024, United Way of Greater Los Angeles led a coalition sponsoring LA County’s Ballot Measure A for more affordable housing and accountability, projecting a 28% increase in homelessness in the county if the measure didn’t pass.
Another housing policy opportunity United Ways of California has identified based on the Real Cost Measure study is expanding and maximizing the utilization of California’s renters’ tax credit by making it refundable and indexing it to inflation, as well as advocating for a refundable federal credit. These changes can bring substantial improvements for struggling households on a significant scale.
Convening the Community
United Way brings together diverse groups to solve community problems, and housing work is a key example of this. California United Ways are not tackling this crisis alone; they’re partnering with local community members, organizations, government, businesses, and elected officials to bring these solutions to life.
In addition to working collaboratively to provide the aforementioned direct services and advocacy, several California United Ways are convening and educating their communities about local housing needs.
For example, United Way of San Joaquin County issues reports on homelessness in their county and partnered with San Joaquin County Health Care Services to create, host, and report back to the community on a forum that convened leaders from various sectors across the region to share insights and ideas for solutions to homelessness.
United Way Monterey County also recently hosted a housing symposium that brought together key agencies to present innovative housing stability strategies, foster a shared understanding of effective practices, and explore collaborative efforts to help vulnerable groups better access affordable housing.
Orange County United Way provides data on homelessness and public opinion around housing and homelessness in their county so leaders can make evidence-based decisions, and they recently convened 38 agencies to create a shared narrative for the community, which will be followed by cohorts to put the work into practice in their individual agencies as well as collectively. Orange County United Way also conducts education and outreach in the community to increase understanding of homelessness as well as increase public support for housing initiatives and policies. Since 2018, they’ve reached nearly 50,000 community members with this work.
United Way Bay Area also mobilizes communities through conversations about solutions that increase housing equity and affordability. For example, they convened a group of housing organizations in Gilroy, a community that is philanthropically underserved, so these groups can work together to organize for tenant protection policies.
United for Housing, United for a Brighter Tomorrow
Whether they’re advocating for housing bonds, building permanent supportive housing, improving transitional housing options, providing funds to local housing and homelessness organizations, or helping families navigate housing needs, California United Ways are dedicated to taking on the housing crisis in our state because stable housing is a critical component for community members—and communities—to thrive. Learn more about housing work your local United Way may be doing.
