homeless hands
Arizona’s Homeless Crisis Escalating Despite Massive Spending, Per New Report

September 25, 2024

By Staff Reporter |

Despite Arizona spending over $1 billion annually to address homelessness, a new report finds that the problem has grown into a crisis in recent years.

The Common Sense Institute Arizona (CSI) issued a report on Monday revealing that the homeless population has grown by 40 percent in the last five years (9,900 in 2015 to 14,200 in 2023), with 53 percent of the current homeless population living without shelter. 

Arizona’s 2023 Point in Time (PIT) count estimated the state to have over 14,000 homeless individuals; CSI speculated the PIT count was an undercount. CSI noted that the homeless population was more stagnant from 2015 to 2018, but that it has undergone “marked acceleration” from 2019 to present.

For the 10,000 homeless that Arizona’s emergency shelters serve annually, another 6,000 go without any shelter provisions.

CSI proposed the burgeoning homelessness crisis was due to gaps in data sharing between service providers — like the Homeless Management Information Systematic — as well as a shortage in affordable housing. 

The organization arrived at those proposed solutions through consultations with 24 stakeholders representing the state’s over 200 public and private providers behind the $1 billion in homelessness-related expenses. 

“Arizona lacks a unified, by-name list that would allow real-time tracking and service prioritization for individuals experiencing homelessness,” said CSI in a press release. “The state faces a severe housing affordability crisis, with a shortage of over 150,000 affordable housing units.”

Though the stakeholders were more unified in approaches to treating the problem, they disagreed about the root causes of homelessness. Some argued it was the housing markets, while others argued it was mental health and addiction. 

The report also proposed that current coordination-related gaps exist in the state’s homelessness response systems, particularly the Continuums of Care (COCs). Additionally, stakeholders advised CSI that Arizona’s current system overly prioritizes meeting federal and external stakeholder requirements at the expense of effective services and interventions, such as tailored interventions addressing mental health or substance abuse.

“Decades of focus on permanent solutions to poverty and housing, although well intended, have left a system poorly adapted to the pressing problem – addiction, mental health, and chronically unsheltered homelessness,” stated the report. “Refocusing on emergency shelter, developing an effective command system to identify and respond to incidents in real time, and other reforms are needed to solve this crisis.”

These services and interventions, said CSI, ought to cultivate personal accountability and self-sufficiency within the homeless as steps to independence. 

“To safeguard Arizona’s economic resilience and maintain a robust safety net for our most vulnerable citizens – the chronically homeless, who are often suffering with mental illness or addiction – public policy must acknowledge the paradox that the true strength of this safety net lies in preventing as many people as possible from needing it, rather than maximizing funding for, and the number of people permanently dependent on, that safety net,” stated the report. 

CSI fellow Julie Katsel said in the same press release that Arizona’s homelessness reaching crisis levels proves that the state’s approach to the issue needs work, which she characterized as “injecting more money” into programs.

“We know that current systems haven’t solved the problem so far,” said Katsel. “[Arizona needs] improved coordination, more effective interventions, and better rapid response tactics are critical steps we need to take.”

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