Even with a new, 300-space homeless shelter nearby, more people used O'ahu's largest homeless shelter last year in another sign that Honolulu's homeless problem is not easing, advocates say.

"It's ironic," said Connie Mitchell, executive director of the Institute for Human Services, which operates the shelter. "With new shelters opening up, you'd think there would be less people (sleeping at IHS). But there's more."

IHS overall housed 4.2 percent more people in 2006 than the previous year, a boost primarily driven by a 17.3 percent increase in single women. Officials said the spike in women resulted from additional space IHS created for them using a ground-floor garage at night.

That underscores the belief among homeless advocates that the number of shelter beds is not keeping pace with the number of people who need them.

"Any time additional space opens up, a line forms," said Sandra Miyoshi, homeless program branch administrator for the Housing and Community Development Corp. of Hawai'i. "There's not enough space to meet demand."

The problem could get worse in a hurry.

The state last month opened the Civic Center emergency homeless shelter in Wai'anae, which is designed to eventually house 300 people. But the future remains uncertain for the 300-person-capacity Next Step shelter, which opened last May in a converted warehouse in Kaka'ako.

Next Step was designed as an emergency response to the city's evictions of homeless people from Ala Moana Beach Park. But only 18 percent of the 340 people who originally moved into Next Step had left as of last month.

And yesterday, Next Step officials weren't certain how long they will be able to operate.

Doran Porter, executive director of the Affordable Housing and Homeless Alliance, which manages the shelter, hopes to sign a contract on Monday that will keep the facility operating at least through July 31.

"There is a question how long the shelter will be available," Porter said. "If not, we'll have 300 folks who are currently being sheltered who will have no place to go."

They would most likely have to join the line of people hoping for space each night at IHS' shelters in Iwilei.

The organization last year saw increases in both the number of single men and women who sought refuge there.

The number of families with children, however, dropped 10.2 percent — from 25,954 shelter bed nights in 2005 to 23,303 last year. The decline was primarily the result of renovations to family dorms that reduced the amount of family beds, IHS officials said.

But when IHS added space for single, adult women by putting some of them on the garage floor, occupancy shot up from 24,194 shelter bed nights in 2005 to 29,257 in 2006.

During the day, the garage is still used to park IHS vehicles. At night, the cars are removed and replaced with up to 40 sleeping mats.

Gigi Grizaida, 31, has slept in the garage about a dozen times since she came to IHS on New Year's Day.

She said she doesn't mind sleeping in the garage. The second-story, 60-bed sleeping area for women can be hot, noisy and full of drama, Grizaida said. Downstairs, the garage has a natural, cool breeze, and is supervised and locked for safety, Grizaida said.

"It's nice and cool — and quiet," Grizaida said. "A lot of girls like me would rather be downstairs. ... If I was given a choice, I'd pick the garage."

Like Grizaida, once people find space in an O'ahu homeless shelter, Miyoshi said, "they have no place to go."

O'ahu's shelters are full of people who are ready to move into affordable housing, but there simply isn't enough inventory, Miyoshi said.

"They can't leave and they hit this glass ceiling," she said. "If they have nowhere to go and we force them out, we'll be putting them out on the streets again. So that's counterproductive. But that means we can't take in other homeless people."

Hawai'i has the lowest unemployment rate in the country. But even with employers offering higher salaries, flexible hours and other perks, housing remains beyond the reach of many workers, said Porter of the Affordable Housing and Homeless Alliance.

The island's median price for a single-family home was $600,000 in January and the median cost of a condo was $320,000.

"Our economy," Porter said, "continues to produce more and more homeless."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com.