

A breakthrough may come in part from recognizing the distinct problems faced by those who are unstably housed and by considering bold approaches to reenvision our response ecosystem around people, not siloed individual programs.Īs part of McKinsey’s Social Responsibility initiative, this article is an effort to bring our analytical capabilities and pro bono consulting to support the communities in which the firm operates.

As this article details, homelessness in the Bay Area comprises three distinct problems but is largely perceived and treated as one via a complex and fragmented response ecosystem. People who are at risk for or experiencing homelessness each have a unique journey, and each individual is forced to navigate a complex maze of shelters, services, and programs that vary not only in size, scope, and approach but also in effectiveness.

This article is a collaborative effort by Alexis Krivkovich, Kunal Modi, Eufern Pan, Ramya Parthasarathy, and Robert Schiff, representing views from McKinsey’s Bay Area office. The primary national source of data on homelessness is the US Department of Housing and Urban Development’s PIT count, which is an unduplicated count of sheltered (annual) and unsheltered (biennial) homeless persons conducted by volunteers on a single night in January. 4 Point-in-time (PIT) counts for Bay Area counties in 2022. On any given night, 38,000 individuals in the Bay Area are homeless, an increase of 35 percent since 2019. with a significant share of the population concentrated in the Bay Area. it also hosts half of the unsheltered homeless population in the United States, 3 Manuela Tobias, “California homeless population grew by 22,000 over pandemic,” CalMatters, OctoState of homelessness: 2022 edition, National Alliance to End Homelessness, October 2022. And while California is on track to become the fourth-largest economy in the world, 2 “ICYMI: California poised to become world’s 4th biggest economy,” Office of Governor Gavin Newsom, October 24, 2022. Chronicle poll reveals unexpected views,” San Francisco Chronicle, September 15, 2022. 1 Kevin Fagan, “Homelessness is S.F.’s top challenge-that’s obvious. Locally, the issue is front and center, too: 70 percent of San Francisco residents cite homelessness among the top three problems in the city. Few, if any, American cities or metro areas are grappling with the large scale of homelessness seen in the San Francisco Bay Area.
