Homelessness is a Housing Problem

OPINION: THE surge in homelessness exposes a deepening crisis. Each day, more people and families are left without a home, highlighting an urgent need for immediate action and empathy.

Homelessness Australia reports that in 2022–23, homelessness services had to turn away nearly 295 people per day – approximately 108,000 unassisted requests over the year.

In March 2024, 95,300 people across the country were supported by specialist homelessness services which received government funding.

The Australian Institute of Health and Welfare found that the single largest cohort among these were women aged 25-34 (12.2 per cent) followed by women aged 35-44 years (11.9 per cent).

Specialist Homelessness Services Clients by Age and Sex: March 2024

Source: Australian Institute of Health and Welfare

Homelessness isn’t just an Australian issue — it’s also escalating across the US, Canada, and the UK.

Dr. Gregg Colburn and data scientist Clayton Page Aldern, in their book “Homelessness Is a Housing Problem”, debunked conventional beliefs about the causes of homelessness — such as mental illness, drug use, and poverty — and found that these factors, while relevant, do not fully explain the widespread crisis in cities like Seattle, San Francisco, or Los Angeles. Instead, they point to housing market conditions, like the cost and availability of rental housing, as the core issue.

They discovered a counterintuitive truth: areas with higher poverty rates can have lower rates of homelessness. For example, Detroit has far higher poverty rates than San Francisco, yet its homelessness rates are a fraction of those in the Bay Area. Similarly, higher rates of serious mental illness do not correlate with higher homelessness rates. They warn that focusing only on individual circumstances ignores the crucial driver of the crisis: housing market dynamics.

“We have a gross undersupply of housing at all levels, but certainly of affordable housing. Failure to address that gap will, I think, guarantee that we will continue to struggle with this crisis in perpetuity.” Dr Colburn wrote.

In Australia, the rising cost and dwindling availability of housing are driving the homelessness crisis across our cities and regions. Soaring living costs, fears of inadequate affordable housing, and the uncertainty of our times are fuelling widespread anxiety about housing security.

The latest ANZ CoreLogic Housing Affordability Report shows a dramatic increase in housing costs, affecting both renters and homeowners. By March this year, the income needed for housing expenses had hit new highs due to rising mortgage rates and a tighter rental market. This marks the fifth consecutive quarter where the median income-to-rent ratio exceeded 30 per cent, after 7.5 years of being below this level. For a household at the 25th percentile of income, paying the 25th percentile rent value would consume 54.3 per cent of their income, far above the 30 per cent threshold where a person or household is considered to be in housing stress.

Homelessness Australia’s 2024-25 Pre-Budget Submission highlights that the inability to keep up with rent is the fastest-growing cause of homelessness. Australia’s record low vacancy rates and high rents are fuelling fierce competition in the private rental market, exacerbating housing inequality.

The overwhelming majority of people needing settled and medium term accommodation cannot get the support they need. According to Australian Institute of Health and Welfare data, in 2022-23, 73 per cent of 109,151 households seeking long-term housing and 58 per cent of the 81,743 households seeking medium-term accommodation could not get the accommodation they needed.

According to Homes NSW, last year, 40% of people seeking housing assistance in NSW were impacted by the housing crisis, 38% had financial difficulties and 35% were escaping family and domestic violence.

A recent Salvation Army survey found one in four Australians under 40 worry about becoming homeless or losing their home in the next year, and three in ten people earning under $100,000 share these concerns.

Australia’s decades of under-investment in social and affordable housing are glaringly evident. According to Right Lane Consulting’s report, “Housing Matters: Unlocking the Supply of Social and Affordable Housing at Scale,” social housing as a share of Australia’s housing stock has declined by a third over the last 25 years, dropping from 6% to about 4 per cent, which is well below the OECD average of 7 per cen. Between 2014 and 2022, the number of social housing dwellings increased by only 20,000 homes, with community housing stock gains offsetting the loss of public housing stock. To maintain the proportion of social housing stock at 6 per cent in 2022, an additional 223,000 homes would have been needed.

Source: Right Lane Consulting

The waiting list for social housing across Australia now exceeds 224,000 households, with around 106,000 of these in urgent need. As the crisis persists, the waitlist grows, leaving countless individuals and families in housing distress. The Give Me Shelter report by SGS Economics and Planning, and sponsored by Housing All Australians, reveals that every $1 invested in social and affordable housing returns $2 in benefits, outperforming many major infrastructure investments in Australia. Neglecting these housing needs could cost the community an eye-watering additional $25 billion annually by 2051.

It’s encouraging that the housing and homelessness crisis is being discussed, but talk alone won’t solve the problem. Nor will another government inquiry; we need concrete action.

Unfortunately, there is no simple solution — no “silver bullet.”

The Albanese Government is working with state and territory governments to develop a National Housing and Homelessness Plan—a ten-year strategy to tackle the country’s housing challenges and support those facing housing stress and homelessness. However, scepticism is growing about the process. The Issues Paper from July 2023 and the Consultation Summary from January 2024 reveal significant shortcomings, with the release date now pushed to the end of the year.

As we approach a crucial Federal election, where housing will be a central issue, it’s deeply disappointing that the three main parties — Labor, Coalition, and Greens — are at odds, each proposing different policies to address the housing crisis. Given the urgency, it’s utterly unacceptable that our political leaders can’t come together and find common ground.

At the same time, we can’t rely solely on the government to address this crisis. This is a collective challenge that demands action from government, the for-purpose and the private sectors. Every part of society must step up and contribute to solving this urgent issue.

Social and affordable housing is critical social infrastructure just like schools and hospitals. We need a comprehensive strategy to tackle housing affordability and supply, recognising housing as a fundamental human need. Just like quality education and healthcare, ensuring access to safe, secure, and affordable housing is vital for building a more equitable and just society.

Dr Gregg Colburn will visit Australia in September to speak at a series of breakfasts hosted by Housing All Australians – Melbourne (3^rd), Sydney (4^th ) and Brisbane (5^th). To register please visit www.housingallaustralians.org.au

By Adrian Harrington, NSW Chair of Housing All Australians and the former Chair of the Federal Government’s National Housing Finance and Investment Corporation.