The Homeless Economy
Christopher Rufo's reporting on the Haitian migrant problems in Springfield, OH and Charleroi, PA for City Journal had an impact on the 2024 election. In those pieces, he showed the economic interdependency of NGOs, landlords, sweatshop employeers, car dealers, and others in making money out of resettling Haitian migrants in "temporary protected status". Such programs have major impacts on native-born members of surrounding communities, including landlords who evict longtime tenants to get higher rents from overcrowded units rented to migrants, for instance.Mayor Karen Bass has turned Los Angeles into a magnet for the street homeless. The numbers are shocking:
— Christopher F. Rufo ⚔️ (@christopherrufo) May 19, 2026
• 64% are from outside the City of LA
• 40% are from outside California
• 6% are from outside the United States pic.twitter.com/4HHsSQM2Xw
Rufo is now starting to take a similar approach in a piece posted on his website: More Than Half of L.A.'s Street Homeless Are Not From L.A.:
Los Angeles hosts the nation’s largest unsheltered homeless population. In recent years, despite billions in city and county spending, L.A.’s once-pristine streets have become littered with tents, drugs, and feces. City leaders have made elaborate promises about managing the homeless problem, but few seem to have asked a simple question: Where, exactly, are these people coming from?
There is a reason for that. In 2020, the city-county Los Angeles Homeless Services Authority (LAHSA) found that one-third of “unsheltered Angelenos” became homeless outside of Los Angeles County. In 2024, the nonprofit RAND Corporation reported that 41 percent of the street homeless surveyed across three Los Angeles neighborhoods—Hollywood, Venice, and Skid Row—were “last housed” somewhere other than L.A. County.
In other words, even if Los Angeles has some type of "affordable housing shortage" or other conditions that put people on the street, why would people nevertheless seek out LA as a place to live? There must be many places that have equivalent good weather but where housing might be more easily available. Something about LA is serving as a magnet for the potentially homeless over and above locations in, say, Arizona, Texas, or Florida.
Both reports cut against the narrative of left-wing politicians and activists, who insist that any claim that out-of-town homeless are flooding L.A. is a “myth.” In 2021, LAHSA stopped publishing previous-location data. In 2025, RAND removed the metric from the organization’s annual report and included it in a separate, lesser-read “annex.”
We asked LAHSA and RAND why they buried this data. LAHSA said it stopped publishing previous-location figures because of respondents’ “varying interpretations of the question.” RAND claimed that it moved the data to the annex “due to a need to save costs on publishing,” and confirmed that the data would remain there in the group’s upcoming report.
Another reason might be that the massive migration of homeless people to Los Angeles violates progressive pieties—and these groups would rather suppress those data than face their implications. (In response to this accusation, LAHSA said it stopped publishing results for the previous-location question “solely due to the statistical uncertainty,” but noted that the “question is in the queue for revision and validation”; RAND again cited “scarce resources” and the need to “streamline the main report.”)
The usual leftist explanation for homelessness is that there's a "shortage of affordable housing", although in recent years there's also a tacit acknowledgement that many homeless are unable to sustain a life pattern that enables them to afford housing at any price due to mental illness or addiction.
For years, Los Angeles’s homelessness policy has been rooted in the idea that the condition is a housing problem. The city and county have spent hundreds of millions of dollars on “housing first” and “harm reduction” programming—in a nutshell, providing housing and drug paraphernalia instead of mandating treatment—while failing reliably to punish quality-of-life crimes, such as public camping, drug consumption, and petty theft.
. . . The implications of our survey are clear: just building housing won’t solve Los Angeles’s homelessness problem. The wrong kind of housing program might even make it worse. Giving more homeless people a permanent home, with no strings attached, simply inspires nonresidents to come here.
The real way to solve Los Angeles’s homelessness crisis is to reverse the polarity of the magnet: enforce drug and camping laws, mandate treatment, and insist on clean and orderly streets. The only alternative is lawlessness—the end result of an approach that has turned the City of Angels into an open-air homeless encampment.
Unfortunately, at least in this relatively short piece, Rufo doesn't go into the broader economic environment homelessness creates. But James O'Keefe covers just one part of the larger ecosystem in The New York Post:
In Skid Row, I was personally on the ground in disguise while wearing an old LA Raiders hat and a Mother Mary hoodie with ripped up pants. Being there showed me how far our society has fallen.
Needles, dead animals, rotten food, and people sleeping on the streets have made parts of LA look like a city that has completely succumbed to hell.
On top of all of that, criminals were taking advantage of the homeless by selling votes for a few dollars. Reports over the years had claimed that election fraud is going on in California. But we showed — for the first time ever — not circumstantial evidence, but real, live exchanges of cash for votes. Darkness, overshadowing democracy, for a mere $2 a voter.
Exactly how this scheme works is covered in a recent federal indictment:
Federal officials have charged a Marina del Rey woman with paying individuals to register to vote, including homeless residents of L.A.’s infamous Skid Row.
In a press release issued Monday, the U.S. Department of Justice said Brenda Lee “Anika” Brown Armstrong is charged with one felony count of paying another person to register to vote.
The 64-year-old has already agreed to plead guilty.
According to the DOJ, which cited her plea agreement, Armstrong periodically worked as a “petition circulator” for roughly two decades.
“In that role, she was paid by individuals and entities – known as ‘coordinators’ – to collect voter signatures on official petitions that qualify initiatives, referendums and recalls for California state ballots,” the DOJ said.
Upon gathering enough signatures, Armstrong would return the petitions to the “coordinators,” who then paid her a set amount for each signature, although officials said it varies depending on the specific ballot initiative. She “endeavored” to ensure the signatories were registered voters because the people who paid her only gave her money for signatures attributable to registered voters, according to federal officials.
. . . Skid Row was a convenient place for Armstrong to collect signatures because of its high concentration of people in a relatively small area who were willing to sign petitions in exchange for payment,” the DOJ said, adding that overall, Armstrong would give individuals $2 or $3 in cash to “induce them” to sign her petitions. “Many of Skid Row’s homeless population were not registered to vote [and] some homeless people did not have an address to put on the forms … On several occasions, Armstrong provided a homeless individual with her own former address in Los Angeles so they had something to write on the registration form.”
But this is just one racket within the overall homeless ecosystem. Organized retail theft can involve homeless people who in effect have a "job" shoplifting from low-level retail stores and turning their hauls over to coordinators who pay them. Another highly lucrative activity, equivalent to the NGOs that resettle migrants, is the homeless non-profit racket, which Spencer Pratt is attempting to expose in his mayoral campaign:However, as I've been pointing out, even if Pratt winds up in the top two after the June 2 primary, his chances in the November election are a long shot -- although the national effect of his campaign, which is Quixotic at best on the local level, may succeed in elevating the issue as a national priority. But whoever wins the executive local elections in California, whether for city or state government, will face leftist supermajorities in city councils and the state legislature.Spencer Pratt just NAILED the homeless grift in LA 🔥
— Lillian L. Carranza (Retired)🇺🇸 (@LAPDCARRANZA) May 19, 2026
“Homeless ‘nonprofit’ execs are raking in over $1 million a year on the homeless problem — guarantees the problem is NEVER solved.”
Drive around LA. More tents, more death, more money for the suits.
6 people are dying EVERY… https://t.co/sJyikmCkzC
The only real progress will have to be made via federal anti-fraud envforcement, as we see above with a homeless vote fraudster's guilty plea.



