It is becoming increasingly difficult for many Australians to afford their rent or home-loan repayments, contributing to the rising number of people who are either homeless or at risk of homelessness.
New modelling from Impact Economics and Policy, a group of expert economists and policy specialists, estimates that in 2022, as many as 3.2 million people were at risk of homelessness across the country, where one negative shock could result in them losing their home.
This represents a 63% increase between 2016 and 2022 in the number of Australians at risk of homelessness.
Homelessness is increasing in Australia and there aren't enough services to help. Picture: Getty
It also estimates the number of households across Australia experiencing rental stress has increased by 141,000 – or 17.9% – since the 2021 Census.
Rental stress is defined as households in the bottom 40% of income, paying more than 30% of their income on rent.
Australian population at risk of homelessness in 2022 and change since 2016
| 2022 | Change since 2016 | |
| Australian Capital Territory | 16,688 | -8,733 |
| New South Wales | 696,442 | 271,241 |
| Northern Territory | 15,841 | 1,000 |
| Queensland | 715,067 | 318,656 |
| South Australia | 245,829 | 59,346 |
| Tasmania | 90,458 | 18,158 |
| Victoria | 987,405 | 395,994 |
| Western Australia | 272,633 | 118,804 |
| Australia | 3,040,362 | 1,174,465 |
In Queensland, there was an 80% increase in people at risk of homelessness in 2022 compared with 2016, and in Western Australia, there was a 77% increase.
However, in the Australian Capital Territory (ACT), there was a decrease of 34%.
Despite the increase in people suffering from homelessness or rental stress, between 2022 and 2023, only 250,000 Australians sought and received assistance from a Specialist Homelessness Service. This is largely due to those seeking help being unable to contact homelessness services because they are overworked.
The analysis attributes the rising number of people experiencing housing stress to record-low vacancy rates, increasing weekly rents, and the overall increase in the cost of living.
In September 2024, just 1.34% of all rental properties across the country were available for rent, a 57% drop from the start of the pandemic. This represents a roughly 36,000 decrease in vacancies over the past four years.
This has resulted in many renters having to move in with relatives, couch surf, live in share accommodation, or even sleep in their cars.
The additional impact of high rents has also put pressure on households, with weekly rents increasing by 45% over the same period – a difference of $190 per week. This is enough to push many renters, especially low-income earners, into financial stress.
Based on a survey of 23 Specialist Homelessness Services, conducted over a two-week period in September 2024, 39% had to close their doors to people seeking help because they were unable to cope.
Additionally, the majority indicated that they were unable to answer all calls and respond to all emails for some period during the survey.
With the homelessness services unable to cope despite the increase in people needing help, not enough are being assisted, and many are not even seeking help because they know they won't get through.
Not only are homelessness services struggling with the increasing number of homeless people, but there is also a lack of long-term accommodation, meaning those who are being helped often spend long periods in temporary accommodation.
More social and affordable housing is needed to meet demand. Image: Getty.
This is a dire situation for both the homelessness services and the people they are trying to help.
Building more social and affordable accommodation across Australia and providing additional funding for homelessness services would go a long way towards addressing the issue.
Increasing rental stock would make more housing available to renters and help stabilise rental price growth in the long term.
The report highlights that the federal government plans to build 45,000 social and affordable housing properties in the next five years is a good start in addressing the issue. Additionally, increasing rent assistance has had a positive impact.
Ultimately, preventing homelessness by ensuring adequate housing, financial support for those in need, and investment in homelessness services are the best ways to ensure Australians are not at risk of homelessness, and that help is available when they need it.
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