Innovative Housing Solutions for Homelessness and Affordability
Instead of building more affordable housing, we can make current housing affordable
California and many world cities face severe housing shortages and rising homelessness. In California alone, experts estimate a deficit of roughly one million homes, with new affordable units often costing over $1 million to build. Policymakers are experimenting with various strategies to expand supply and support vulnerable populations. This report explores solutions such as Accessory Dwelling Units (ADUs), duplexes, manufactured and modular homes, social housing, mixed-use developments, walkable communities, and universal basic income (UBI). It highlights case studies, policy frameworks, and measurable outcomes from California and around the world.
1. Accessory Dwelling Units (ADUs)
ADUs—also known as granny flats or backyard homes—have rapidly expanded across California due to statewide zoning reforms. ADUs are cheaper and faster to build than large developments, and many are rented below market rate or provided to relatives or low-income tenants. Since 2016, over 80,000 ADUs have been permitted, contributing significantly to affordable housing stock.
Local programs like LA Más incentivize ADU owners to house low-income or formerly homeless tenants. Cities such as San Diego allow additional ADUs if at least one is rented at affordable rates. These policies make ADUs a low-cost, widely dispersed solution to homelessness and affordability, with proven uptake and measurable unit creation.
2. Duplexes and Missing-Middle Housing (SB 9)
SB 9, passed in 2021, allows up to four homes on single-family lots through duplex and lot-split provisions. The goal is to promote gentle density in high-demand neighborhoods.
Initial uptake has been modest due to construction costs, complexity, and city-level resistance. Some homeowners are exploring SB 9 to generate rental income or house extended family, but large-scale affordable housing impact is yet to be realized.
SB 9 reflects a broader trend toward allowing more housing types in traditionally exclusionary zoning areas, aligning with efforts to expand middle-income and “naturally affordable” housing supply.
3. Manufactured, Modular, and Tiny Homes
Manufactured and modular housing is used for both ownership and interim shelter:
Tiny-home villages in cities like San Jose and Los Angeles offer quick, low-cost interim housing for unhoused individuals. One San Jose site helped over 48% of residents transition to permanent housing—higher than traditional shelter rates.
Project Homekey funds modular interim housing with private rooms and wraparound services. In San Jose’s quick-build units, 82% of residents who exited remained housed.
Mobilehome park preservation is vital in California. Programs like MORE support repairs and legal protections for manufactured home communities, often occupied by low-income seniors.
These strategies expand housing faster and at lower cost than conventional construction, particularly for transitional or supportive housing purposes.
4. Social Housing (Public, Nonprofit, and Mixed-Income Models)
Social housing refers to government or nonprofit-developed housing provided at below-market rates, typically to mixed-income residents. Successful international examples show how large-scale social housing can reduce homelessness and improve affordability:
Singapore
Over 80% of residents live in public Housing & Development Board (HDB) flats.
These homes are sold to citizens on 99-year leases and are affordable, high-quality, and mixed-income.
90% of households own their HDB homes, building equity while preventing speculation.
Vienna, Austria
60% of Viennese residents live in municipally developed or nonprofit-operated housing.
Units are well-designed, long-term rentals with strong tenant protections and rent control.
Mixed-income tenants foster social integration and stable neighborhoods.
Finland
Pioneered the Housing First model with public housing dedicated to chronically homeless people.
Between 2008–2015, long-term homelessness dropped by about 33%.
Emphasizes permanent housing before requiring sobriety or employment, with support services integrated.
U.S. and California Developments
Though the U.S. lacks large-scale public housing like Europe or Asia, there is increasing interest in "social housing" frameworks:
San Francisco and Berkeley have passed measures supporting the development of municipal housing.
Statewide bills have proposed public development authorities to create and manage non-market housing.
California’s Project Homekey offers one public-sector analog by converting hotels and public land into permanent supportive housing.
Social housing is capital-intensive but offers long-term affordability, housing stability, and reduced displacement—especially when it integrates mixed-income strategies and strong tenant protections.
5. Mixed-Use and Walkable Communities
Mixed-use zoning combines residential, commercial, and public spaces to reduce transportation costs, improve access to jobs, and create more vibrant, livable communities. Cities like Paris, Vienna, and Tokyo design entire districts around these principles.
In California:
Transit-Oriented Development (TOD) policies promote higher-density housing near transit.
Some cities now allow apartments above shops on commercial corridors.
“15-minute city” planning—where most daily needs are within walking distance—is gaining traction in local planning.
These developments must include inclusionary zoning or affordability mandates to ensure walkability doesn't simply attract higher-income residents and drive displacement.
6. Universal Basic Income (UBI) and Cash-Based Homelessness Interventions
While UBI is not a housing development tool, it has emerged as a powerful support strategy for housing stability:
Vancouver: A one-time CA$7,500 payment to chronically homeless individuals led to 99 fewer nights spent unsheltered in a year and reduced reliance on shelters.
Los Angeles / San Francisco: “Miracle Money” pilot gave $750/month to homeless individuals, resulting in a reduction in unsheltered nights from 30% to 12% of participants.
Denver: Direct payments of $1,000/month led to significant housing transitions; ~35% of recipients secured stable housing compared to 20% in control groups.
These programs suggest that financial instability—not lack of motivation—is often a primary barrier to stable housing. Cash assistance, especially when paired with services, offers a cost-effective complement to housing supply expansion.
Conclusion
No single housing model or policy can solve homelessness or affordability alone. The most effective strategies combine:
Supply expansion (via ADUs, modular housing, and zoning reform),
Affordability guarantees (through social housing and inclusionary zoning),
Supportive services (as in Housing First or Homekey),
Income support (such as targeted UBI pilots).
California and other regions are increasingly using hybrid strategies—like modular public housing with case management, or density bonuses tied to affordability—to fill the gaps left by traditional housing markets. International examples, especially in Europe and Asia, show the power of sustained public investment in housing as infrastructure.
References
California Department of Housing and Community Development
CalMatters Housing Explainers and Reports
Terner Center for Housing Innovation at UC Berkeley
“ADUs in California: One Year of Data” – UC Berkeley
Project Homekey Reports – California HCD
San Jose Homelessness Data and Tiny-Home Villages Outcomes
Vienna Housing Authority – Official Reports
Singapore Housing & Development Board (HDB)
Finnish Housing First National Strategy
World Economic Forum – “Making Affordable Housing a Reality in Cities”
Miracle Money Pilot Reports – Miracle Messages
Foundations for Social Housing Act – California Legislative Tracker
“The Case for Universal Basic Income in Ending Homelessness” – Basic Income Earth Network
Urban Institute – Reports on Modular Construction and Manufactured Housing
City of Los Angeles ADU Incentive Programs
National Low Income Housing Coalition – Reports on Affordable Housing Needs
Open Access Government – “Vienna’s Social Housing Model”
OECD – “Better Housing for All” Policy Brief
The New York Times – Housing and Homelessness Features (California and Global)