Homelessness is a growing problem in virtually every state. Nowhere is it more pressing than in California, which in the past three years spent more than $13 billion, roughly $30,000 annually for each homeless person, to address it. Tragically, its “housing first” approach is a colossal failure. Overall, says the state auditor’s office, California’s homelessness programs are disjointed and poorly managed.

Despite little progress, policymakers keep throwing more money at the problem. Rather than adopting California’s current government-centric approach, other states should learn fr...