homelessness – Page 2 – Public Policy Institute of California

Coping with High Housing Costs in College

California’s housing crisis affects college students around the state. Over the past eight years—even as tuition has been stable at California’s public colleges and universities—the cost of attending college has risen because housing costs have gone up. Most students at California’s community colleges and in the California State University system pay more for housing than they do for tuition. At the University of California, housing costs are on par with tuition (for those who pay full tuition).

One way students limit their housing costs is by living with their parents or other family members. For most students, living at home is much cheaper than living in housing provided by the university or in an apartment off campus. Housing costs vary across systems, but in every case living with family is much less expensive than other housing options. And the savings are large—as much as $10,000 a year.

In fact, the large majority of California undergraduates do live at home (69% in 2017), and that share has been increasing over the past few decades, according to the American Community Survey. Moreover, California college students are substantially more likely to live at home than their counterparts in the rest of the nation.

Partly, this difference reflects the mix of colleges in California. Community college students are especially likely to live with parents—not surprising given the broad geographic coverage of this system. And CSU students are more likely to live at home than UC students. But the difference in living situations between California students and their peers nationwide almost certainly reflects California’s higher housing costs.

Living at home while attending college can be a great way to reduce costs. But it also has a downside. Research suggests that students who live at home are less connected to their college—and less likely to graduate.

California’s colleges and universities cannot solve the state’s housing crisis, but many of them are working to expand on-campus housing opportunities. They are also working with the state to develop ways to expand grants to cover housing costs as well as tuition. The governor’s proposed budget includes $40 million to provide emergency housing support for UC and CSU students (including those struggling with homelessness).

With no quick solution to the high cost of housing in California, thoughtful actions will be critical to providing support to college students across the state.

Video: A Conversation with San Francisco Mayor London Breed

As part of our Speaker Series on California’s Future, PPIC invites elected leaders from across the political spectrum to participate in public conversations. The purpose is to give Californians a better understanding of how our leaders are addressing the challenges facing our state.

As a mayoral candidate, London Breed promised to focus on homelessness and affordable housing—two major challenges for San Francisco and for California as a whole. Not surprisingly, these issues took center stage in her conversation with PPIC president Mark Baldassare earlier this week.

“It is no secret that homelessness is one of the biggest challenges that’s facing our city, and that also comes with the need to build more housing,” said Breed. “I’ve been on a mission! I hired a housing delivery director—someone whose sole purpose is to cut back on bureaucratic red tape that gets in the way of building housing.”

Breed stressed the need for new approaches to behavioral health issues that complicate homelessness: “We have to think about this challenge differently and we have to make hard decisions.” For example, she favors strengthening conservatorship laws. She acknowledged that conservatorship for mentally ill adults is “very controversial.” But, she added, “our jails are being used as mental health facilities, and that’s not a solution.” She is also pushing for safe injection sites, which can provide substance abuse treatment when people are ready to seek it. “Treatment on demand is something we have to start looking at.”

The mayor is also committed to trying new strategies in other policy areas, such as police-community relations and education. “I do think we need to take some risks and propose some things that may make people uncomfortable but ultimately may help us to get the kind of results that will . . . make a difference.”

But Breed also emphasized accountability. Explaining why she wants to hire a mental health director, she said, “We’re a little bit all over the place right now and I want us to address those issues, organize things a lot better for the purposes of helping people.” In this and other areas, she said, “I want to see us make the right investments.”

A Snapshot of Homelessness in California

In late January communities around the country conducted a point-in-time count of their homeless populations. Federally mandated by the US Department of Housing and Urban Development, these estimates help local, state, and federal governments allocate resources and track progress toward the goal of ending homelessness.

Last year’s count revealed that about 130,000 Californians were homeless—nearly a quarter of the national total. California’s rate of homelessness, 33 per 10,000 residents, was among the highest in the country.

After rising 14% from 2016 to 2017, the total number of homeless Californians declined slightly (by 1%) from 2017 to 2018. Homelessness decreased in many of California’s major urban areas, including in four of the five counties with the largest homeless populations: Los Angeles, San Diego, Santa Clara, and Alameda.

However, even with these decreases homelessness remains a huge problem. Los Angeles County alone recorded nearly 50,000 homeless people. The other nine counties with the largest homeless populations reported between 2,300 and 8,600 people experiencing homelessness. And many areas across the state saw increases in the number of homeless people.

The vast majority of homeless Californians (69%) were unsheltered, meaning they were living in streets, parks, or other locations not meant for human habitation—the highest rate in the nation. Among homeless veterans, California has the nation’s highest share that are unsheltered (67%); and among homeless youth, the share that are unsheltered (80%) ranks second highest.

Homelessness is already on many policymakers’ radar. Governor Newsom’s proposed budget would allocate $500 million in one-time grant funding for emergency homeless shelters and navigation centers, and $25 million ongoing to assist eligible homeless individuals in applying for disability benefits. Localities are also trying a range of approaches to expand affordable housing and increase services for the homeless. For example, voters in Los Angeles, Berkeley, Santa Rosa, and Emeryville recently passed local bonds to fund housing projects and assistance for low- and middle-income households and people experiencing homelessness. Coordinating investments, policies, and programs across federal, state, and local levels will be key to reducing homelessness throughout the state.

Poverty and Well-being in California

California is one of 12 states in which poverty declined last year, according to newly released US Census statistics. The state’s official poverty rate is down by 0.6 percentage points to 16.4%, from 17.0% in 2012. But poverty in the state remains high relative to the early 2000s. In 2007, the year the Great Recession began, California’s official poverty rate was 12.4%.

Official poverty statistics are intended to capture cash resources at hand. In other research we have analyzed the role of social safety net programs in augmenting cash resources and helping families to avoid dire economic need.

It’s important to note that jobs are still the biggest source of income for Californians overall, even among those living in poverty. And good news out last week shows the economy is continuing to improve—the unemployment rate in California is now 6.1%, less than half of what it was during the worst of the economic crisis.

At the same time we are all aware that well-being is complex, so it is instructive to look at multiple measures. Food insecurity—defined as ranging from worrying about being able to afford enough food to actually cutting back on meals—is also down from a recent high of 16.2% in California (across 2009–2011) and is estimated to be 13.5% for 2012–2014. In addition, the number of homeless in California—often not well-represented in indicators of need—is estimated to have declined by 13% between 2012 and 2014. The share of all California children with a validated report of maltreatment (most commonly for reasons of neglect) has also dropped, although this appears to be a longer term trend that predates the recession.

Broadly speaking, then, trends in well-being appear to be positive, even though we have a ways to go before poverty and other indicators decline to the levels experienced before the recession.