The housing crisis in Santa Clara County has reached a critical point, with a record 10,711 residents experiencing homelessness in 2025. A recent county survey reveals a startling trend: 58% of those experiencing homelessness are newly unhoused, nearly double the rate from 2023.

Economic instability is driving this surge, with job loss and income reduction being the primary catalyst. Nearly 27% of individuals report losing their job or income as the main reason for becoming homeless, while 17% cite relationship breakdowns and 12% point to evictions or rent increases.

Rent control policies in the county remain severely limited. Only three cities - San Jose, Los Gatos, and Mountain View - have rent stabilization measures, and these come with significant restrictions. San Jose, for instance, only caps rent increases at 5% annually for homes built and occupied before 1979, covering approximately 38,000 apartments.

The situation has grown more dire over time. In 2017, 2,097 individuals were considered chronically homeless, a number that has dramatically increased to 4,650 in 2025. The county’s homeless population has grown across most cities, with Cupertino experiencing the highest percentage increase from 48 to 101 residents.

Local authorities acknowledge the systemic challenges. Kathryn Kaminski from the Santa Clara County Office of Supportive Housing candidly states that “systemic factors like lack of affordable housing, local economic conditions, and high living costs are preventing people from exiting homelessness”.

While San Jose has attempted innovative solutions like tiny home villages and converting hotels into shelters, critics argue these are temporary measures. Sandy Perry from the South Bay Community Land Trust describes such approaches as “cosmetic,” emphasizing that without permanent affordable housing, these efforts merely manage the symptom, not the root cause.

As Silicon Valley continues to wrestle with this complex challenge, the human cost of its economic model becomes increasingly apparent - a stark reminder of the region’s growing inequality.