A nonpartisan think tank, the Common Sense Institute Arizona, has released an update on it’s February findings that found approximately $1 billion has been spent on homelessness from both the private and public sector in Arizona.
The report, “Reforming Arizona’s Homeless Service Ecosystem: A Crisis in Need of Triage,” provides an in-depth analysis of Arizona’s escalating homelessness crisis, identifying key gaps in the state’s current service models and offering recommendations for more effective interventions.
Key Findings:
- Funding vs. Outcomes: Arizona is spending over $1 billion annually on homelessness-related services, yet the state’s homeless population has surged by 40% in the last five years. Currently, 53% of individuals experiencing homelessness in Arizona are unsheltered.
- Emergency Shelter Needs: Emergency shelters in Arizona operate at or near capacity, serving nearly 10,000 individuals per year, yet over 6,000 people remain unsheltered on any given night.
- Data Coordination Gaps: Inefficient data sharing between service providers has led to ineffective resource allocation. Arizona currently lacks a unified, by-name list that would allow real-time tracking and service prioritization for individuals experiencing homelessness.
- Impact of Chronic Homelessness: Nearly 26% of Arizona’s homeless population is chronically homeless, requiring more intensive services, treatment options, and housing solutions. Without immediate intervention, this segment will continue to strain emergency systems and long-term care facilities.
- Lack of Affordable Housing: The state faces a severe housing affordability crisis, with a shortage of over 150,000 affordable housing units. This shortage disproportionately impacts those living at or below 50% of the Area Median Income (AMI).
“Homelessness in Arizona has reached crisis levels,” said Julie Katsel, Jim Kolbe Free Enterprise Fellow. “We know that the current systems haven’t solved the problem so far. This report tries to answer why this issue has become so intractable, and what—besides just injecting more money—should be done differently. Improved coordination, more effective interventions, and better rapid response tactics are critical steps we need to take.”
