California has the largest homeless population in the nation, with a significant gap between the demand and supply of affordable housing. This disparity not only undermines the quality of life and educational opportunities for residents but also poses grave health risks. This study investigates the nexus between social policies and homelessness in California. By analyzing systemic factors such as exorbitant housing costs and inadequate social safety nets, we uncover the root causes of housing instability. Our examination extends to exploring the multifaceted health disparities experienced by homeless individuals, particularly older adults, and elucidating the complex interplay of mental health struggles within this demographic. Findings reveal that prevailing social policies significantly contribute to homelessness, exacerbating health inequities among vulnerable populations. Our analysis stresses the urgent need for evidence-based policy reforms and holistic, community-based approaches to address homelessness effectively and promote health equity.