The L.A. Homeless Services Authority (LAHSA) points to "city and county initiatives" for the drop.
The new Point in Time Count took place in February after it was postponed by the January wildfires.
LAHSA's data shows homelessness in the county is down 4% and has declined 14% the last two years.
In the city, street homelessness is down 3.4% and has dropped 17.5% percent since 2023. The number of people in shelters rose by 4.7%.
The number of makeshift shelters, tents, cars, vans and RVs also declined for a second year in a row, down 13.5%.
Still, the agency says more than 485,000 affordable housing units are still needed to continue the downward trend.
Tackling this issue was a campaign promise from L.A. Mayor Karen Bass.
"I'm happy to report that when I was on my way over here, I got a text message from our governor, congratulating Los Angeles for moving the needle forward," Mayor Karen Bass said.
"Are there still unhoused Angelenos? Yes. Are there still encampments? Yes. Is reducing homelessness by having people in hotels still very expensive, and do we need to look for more cost-effective ways? Yes. But all of these are steps forward," Bass said.
Brett Feldman, who provides medical care to those living on the street, says he's noticed a difference.
'What I'm noticing is that, compared to when I started this work in L.A. in 2018, it's much easier to get people into housing," Feldman said.
LAHSA collects the data in three ways: through a street count, a shelter count and a survey.
John Alle, the co-founder of the Santa Monica Coalition, was part of the street count in Echo Park this year, and he says he doesn't fully trust the numbers.
"They started early and they ended by 12, midnight. They reduced the number of volunteers. They weren't allowed to go up to RVs. They weren't allowed to go into garages. So, how many did they miss? It's like crime not being reported," Alle said.
There are still tens of thousands of people experiencing homelessness, according to the most recent LAHSA count. In the city of L.A., that number is roughly 43,699, and in L.A. County, it's 72,308.
We are still waiting to see the data broken down by neighborhoods, with some neighborhoods seeing higher numbers of homelessness than others.