An increasing number of Santa Clara County residents are becoming homeless for the first time, driven largely by the area’s soaring cost of living.

According to a January count, the county now has a record 10,711 unhoused individuals. A survey of 1,534 homeless people revealed that 58% were experiencing homelessness for the first time—nearly double the 34% reported in 2023.

The main cause of homelessness is job or income loss, cited by 27% of respondents. Other significant factors include relationship breakdowns (17%) and evictions or rent hikes (12%).

Todd Langton, founder of nonprofit Agape Silicon Valley, attributes much of the crisis to the lack of rent control. “Landlords can charge whatever they want, especially with a housing shortage,” he said. Only three cities—San Jose, Los Gatos, and Mountain View—have any rent control policies, and even those are limited in scope and applicability.

Long-term homelessness is also rising. In 2017, the county had 2,097 chronically homeless individuals. That number has more than doubled to 4,650 in 2025. The number of chronically homeless people in shelters has jumped 56% since 2023.

Homelessness has increased in most cities across the county. San Jose saw an increase of 237 people, reaching a total of 6,503. Santa Clara’s count rose from 461 to 794, and Mountain View’s from 562 to 879. Cupertino experienced the steepest rise, from 48 to 101. Meanwhile, five cities—including Los Gatos, Sunnyvale, and Gilroy—reported declines.

Kathryn Kaminski, head of the county’s Office of Supportive Housing, said more people are falling into homelessness than being housed. The root causes—insufficient affordable housing, high living expenses, and economic challenges—are also barriers to escaping homelessness.

The county’s Homelessness Prevention System has provided rental assistance to nearly 36,000 people from 2020 to mid-2025. In 2023, the average aid per family was around $7,400. For this fiscal year, the county has allocated $27 million to the program, down $3 million from the previous year. San Jose is contributing $5.5 million, also less than the $7.5 million it gave last year.

San Jose’s strategy includes building tiny homes, designating safe sleeping and parking areas, and converting hotels into shelters. These efforts have helped reduce the city’s unsheltered homeless population to around 3,959 people, or 60% of its homeless residents, as of January.

Tasha Dean, spokesperson for Mayor Matt Mahan, emphasized that temporary shelters are a key part of the city’s efforts to bring people indoors quickly and cost-effectively. “The longer someone remains on the streets, the harder it becomes for them to leave,” she said.

Recent progress includes the opening of new tiny home sites and converting five motels into housing, adding hundreds of shelter beds. Dean noted the city is close to reaching a major goal—bringing half of its homeless population indoors by year-end.

However, critics argue that without permanent, affordable housing, temporary solutions fall short. Sandy Perry of the South Bay Community Land Trust said Mahan’s strategy is more about appearances. “If homelessness looks reduced, it serves his agenda—especially with the Super Bowl coming in February,” Perry said.