Grants for Housing & Homelessness

Where housing grants go

The largest share of dollars in this philanthropic space goes to housing development, we found in IP’s State of American Philanthropy report. Grants related to housing and homelessness also support direct services for unhoused people, efforts to increase and preserve affordable housing, advocacy, and movement building.

Philanthropy for housing often involves place-based, public-private partnerships between foundations and government funders, such as Home for Good LA. That said, a recent evaluation of a five-year initiative by Tipping Point Community to address chronic homelessness in San Francisco illuminates how challenging it is to fund in this space, how important it is for philanthropy to complement government funding, as well as how much work effective public-private partnerships are.  

While housing and homelessness grants often focus on the local level, national grantmaking continues, typically supporting national policy advocacy. There is also a growing trend of donor collaborations; for example, the Partnership for the Bay’s Future and the Fund for Housing and Opportunity. In addition to grantmaking, impact investing and mission-aligned investing are a big part of how funders engage in philanthropy for housing and to address homelessness. In recent years, grantmaking to prevent homelessness has increased, as noted in IP’s State of American Philanthropy report. There is also growing understanding of housing as a public health issue.

History of philanthropy for housing

Historically, the government has driven federal housing policies and reform. Four economic crises in the 20th century caused the government to implement various housing strategies to improve housing accessibility and homelessness.

From almshouses to early Victorian efforts to build affordable housing for the working class, philanthropy for housing is a storied effort with varying degrees of success. The early “percentage philanthropy” of philanthropists like George Peabody, Octavia Hill and Edward Guinness attempted to mitigate the effects of homelessness and insufficient housing. American philanthropy, according to some scholars, further intended to address the housing crisis in two eras of major economic transformation. A century ago, John D. Rockefeller advocated for philanthropic involvement in the creation of housing in the form of what we might today call impact investing or strategic grantmaking.

In the first decades of the 21st century, the “housing first” model was seen by the U.S. government, as well as many private funders, as the solution to homelessness. In more recent years, conservative critics have argued that this approach has failed to solve the problem, prompting some policymakers and donors to shift to other ideas, such as requiring treatment for substance use disorder or mental health as a precondition for housing support. 

A growing trend in grantmaking is to address the root causes of homelessness, as IP’s Martha Ramirez explains. Changing the narrative around homelessness and what causes it is another growing priority among nonprofits and funders seeking progress on this issue, Ramirez reports. 

Gaps in housing and homelessness funding 

Given the complexity of the causes of housing insecurity and homelessness, gaps in funding for homelessness and housing run deep. As with other areas of philanthropy, only a small share of funding goes to grassroots, community-led solutions. 

Government grants and budgets have long funded public and subsidized housing, as well as homeless shelters. However, with the changing political climate, it remains to be seen how large of a gap we will see in the wake of deregulation and the redirection of funds away from housing policies that keep communities healthy and safe.

The impacts of climate change, and ensuing climate migration, will further exacerbate housing insecurity, as homes are destroyed and climate refugees are driven to new areas already experiencing housing shortages. As evidenced by the January 2025 fires in Los Angeles or damage from intensifying hurricanes in many parts of the country, thousands of people have been left to rebuild with nowhere to go for several years while insurance companies debate how much coverage these families should receive and FEMA support is capped. Several scholars and real estate experts suggest that the increasing demand for housing in risky areas of the U.S. is driving a climate-induced real estate bubble. As climate crises worsen, insurance companies are dropping homeowners as companies pull-out of high risk areas in a phenomenon called “blue-lining,” leaving millions without support except for the few who can afford DIC insurance. Climate change poses various degrees of risk around the United States.

With mass deportations planned by the Trump administration, the housing crisis will continue to deepen as the cost of building a new home is set to increase dramatically under the stress of less construction workforce. In fact, various reports suggest that about 23-60% of the U.S. construction work force is undocumented, depending on the city. Estimates fluctuate given the tendency of many undocumented people to remain invisible for fear of reprisal. This will mean even less accessible housing for anyone living in the United States.

It remains to be seen how philanthropy will respond to these mounting challenges. Funders Together to End Homelessness and the National Alliance to End Homelessness both offer further insights on the latest gaps in funding here.