The annual Point-in-Time (PIT) count conducted in January showed that 1,648 people were experiencing homelessness, a 12% increase from 2025.
County officials cautioned that much of the increase reflects changes in how the count was conducted rather than a direct year-over-year increase in homelessness.
For the first time, the 2026 PIT count included people participating in safe parking and safe sleeping programs throughout the county who had not been included in previous counts. These programs accounted for an additional 126 people in the overall count.
The county also conducted more robust outreach to identify transition-age youth experiencing homelessness. The number of transition-age youth counted increased from 24 in 2025 to 86 in 2026.
Even as more people reported becoming homeless for the first time, the number of people experiencing chronic homelessness also climbed, reaching 993 people — about 60% of everyone counted.
Still, this year’s number remains well below the historic peak of 2,229 people recorded in 2022.
The PIT report, released Tuesday, showed that more local residents are falling into homelessness for the first time, while those who become chronically homeless continue to face significant barriers to finding permanent housing.
The number of people experiencing homelessness in Santa Cruz rose from 862 in 2025 to 1,024, while Watsonville’s count fell from 335 to 303 during the same period.
Capitola’s numbers dropped from 71 to 32.
Also included in the report:
• 50% of respondents reported experiencing homelessness for the first time, up from 40% in 2025.
• 93% said they were living in Santa Cruz County when they lost their housing, up from 78%.
• 70% had lived in Santa Cruz County for 10 years or more.
• 78% of people experiencing homelessness were living unsheltered.
• The top self-reported causes of homelessness were substance use disorder (25%), followed by job loss (15%).
• 71% reported at least one disabling condition that interfered with their ability to work or secure housing. This includes 52% with a psychiatric or emotional condition, 45% with a substance use disorder, and 42% with post-traumatic stress disorder.
The Point-in-Time Count, conducted Jan. 29, is a federally required census of people experiencing homelessness on a single day. More than 200 volunteers, outreach workers, service providers, and people with lived experience came together to canvass neighborhoods throughout Santa Cruz County, with follow-up surveys providing additional insight.
“The federally mandated PIT Count provides one measure of our efforts to reduce the impacts of homelessness on individuals and the community,” said Robert Ratner, director of the Santa Cruz County Housing for Health Division. “This year’s findings show that more local residents are experiencing homelessness for the first time, and nearly all were living in Santa Cruz County when they lost housing. These results reinforce the need to invest in integrated health and housing services, as well as low-income housing, including for seniors and people with disabilities. We also need to redouble our homelessness prevention and housing retention efforts.”
County officials stress that the PIT count is a snapshot of homelessness at a specific point in time and does not reflect the full breadth of homelessness over the rest of the year. The findings reflect the growing pressures facing many households, including high housing costs, economic uncertainty, and health challenges.
The most commonly reported barriers to obtaining permanent housing were being unable to afford rent (76%) and lacking a job or enough income (70%). Another 42% said they could not afford moving costs.
County officials say the findings reflect the significant challenges many residents face in securing and maintaining housing in the nation’s most expensive housing market.
Communities nationwide could see cuts to funding for programs aimed at preventing and addressing homelessness. Locally, potential changes to initiatives such as Emergency Housing Vouchers, permanent supportive housing, and other safety-net services may make it harder for people who are homeless or at risk of becoming homeless to secure stable housing, obtain health care, and access other critical resources.
Housing projects opening in 2026 and 2027, including Bridge House, Live Oak Landing, Hope Village, Harvey West, Casa Sankofa, and Veterans Village, will add much-needed housing and supportive services for people experiencing homelessness.
The PIT count findings help local officials make policy decisions, decide on funding priorities, and create outreach efforts.
