The Times Australia
The Times World News

.
The Times Real Estate

.

Homelessness much worse than before COVID leaves agencies battling a perfect storm

  • Written by Hal Pawson, Professor of Housing Research and Policy, and Associate Director, City Futures Research Centre, UNSW Sydney



Rising homelessness across Australia is overwhelming the capacity of services to offer emergency help. New evidence in the Australian Homelessness Monitor 2024[1], released today, confirms homelessness has soared well above pre-pandemic levels in most parts of the country.

Complementing the report’s findings from a survey of local governments, a majority of homelessness services agencies also report “significantly increased” numbers of people seeking assistance over the past 12 months alone.

Much of this escalation likely reflects the sheer lack of rental homes available and the extraordinary rent inflation experienced across Australia since 2020. National median advertised rents have jumped 51% since March 2020. Even when adjusted for inflation, the increase is 29%[2].

A welcome increase in government investment[3] in social housing offers the prospect of some limited relief in the next few years. However, as none of the recent spending commitments extends far into the future, and because they generally lack any evidence-based logic, there is a high risk this recovery will prove short-lived.

Agencies are feeling the strain

Recent market conditions have created a perfect storm for homelessness services agencies. In parallel with the rising need for crisis assistance, there is less scope to help clients into secure housing. Some 76% of services were finding it “much harder” to find suitable housing for clients in mid-2024 than a year earlier.

Agency monthly caseloads are up 12% since 2019–20. There’s also a big increase in the average time clients receive support: up by 44% in the five years to 2022–23[4]. This has forced agencies to reduce intakes of new clients seeking help.

The sector has a backlog, causing agencies to struggle to meet demand. They have been triaging applications for help. This means giving priority to people who are already homeless rather than at risk of homelessness.

While justifiable in the circumstances, this damages agencies’ ability to prevent – as opposed to relieve – homelessness.

The rental market pressures fuelling this crisis have continued to intensify, well over two years after Australia’s post-COVID reopening.

These problems would have been even worse without “extraordinary” boosts to Commonwealth Rent Assistance[5] sanctioned by Treasurer Jim Chalmers in 2023 and 2024. In combination with routine indexation, these have raised maximum payments by 45%[6] since early 2022.

Rising homelessness has longer-term causes too

The housing market impacts of COVID-19 disruption have aggravated homelessness in the early 2020s. But it’s only the latest phase in a much longer-term trend. This is because the housing market drivers of the problem are not (only) cyclical but structural; that is, built into how the system operates.

Housing demand and market supply have been out of sync for decades. As a result, house prices have continued to increase faster than incomes. This puts home ownership increasingly out of reach[7] for moderate income earners.

With the path from private renting to first home ownership increasingly obstructed, even for moderate to high income earners, overall demand for tenancies has grown. This inflates sector-wide rent prices, further reducing availability[8] of rentals affordable for people on lower incomes.

These housing market dynamics have been an underlying driver of rising rental housing stress and homelessness since the 1990s.

All the while, these tendencies have been underpinned by key tax and other policy settings[9] that inflate housing demand and restrict supply. The federal government’s promised National Housing and Homelessness Plan[10] must acknowledge, analyse and reconsider these policy settings.

Governments have begun to respond

As the 2022[11] and 2020[12] editions of the Homelessness Monitor identified, signs of stepped-up engagement with homelessness as a policy priority began to emerge among governments as early as 2016 in states such as New South Wales and Victoria.

Then, in 2020, several states launched large-scale, widely welcomed pandemic emergency accommodation programs[13] for people sleeping rough and others who were homeless.

More recently, in a notable policy reversal highlighted by our new research[14], both federal and state governments have pledged appreciable investment in long-term social housing.

Initially led by Victoria and Queensland, followed by the Commonwealth and NSW, this new investment should deliver around 60,000 new social homes by 2030, by far the sector’s largest influx of new stock this century.

At least for a few years in the late 2020s, the promised programs might halt – at least temporarily – the trend of social housing dwindling from over 6% of all homes in the 1990s to barely 4% today[15]. Yet any gains will remain modest relative to the scale of unmet need[16]. Referencing this, housing and homelessness advocates have called for[17] social rental homes to form 10% of all housing.

Even so, we should see, at least for a few years, a marked uptick in scope to help people who are homeless into secure and affordable homes. This will be the result of a surge of newly-built social units supplementing existing homes being re-let. And for more of those helped in this way, these will be homes designed and built to modern standards.

Australia can still do much better

Problematically, though, these developments have come about through incremental and disconnected policymaking. Other than in Queensland[18], there has been a lack of any stated rationale, strategic framing or evidence-based scaling of social housing programs.

In most cases, there has been no explicit recognition or acknowledgement of the need to keep investing much more in social housing than in the recent past. This investment must be enough, at the very least, to prevent a resumption of sector decline. Ideally, it should cover an expansion of social housing in line with known long-term needs[19].

It would surely be logical to include a statement of aspiration along these lines in the government’s promised National Housing and Homelessness Plan.

We cannot measurably reduce and then prevent homelessness without reducing poverty and expanding access to secure and affordable homes. Just as the current situation has come about thanks to mistaken policy choices of the past, these are challenges that could be squarely addressed by course corrections today.

References

  1. ^ Australian Homelessness Monitor 2024 (cityfutures.ada.unsw.edu.au)
  2. ^ the increase is 29% (cityfutures.ada.unsw.edu.au)
  3. ^ increase in government investment (www.themandarin.com.au)
  4. ^ up by 44% in the five years to 2022–23 (www.aihw.gov.au)
  5. ^ Commonwealth Rent Assistance (www.dss.gov.au)
  6. ^ raised maximum payments by 45% (guides.dss.gov.au)
  7. ^ increasingly out of reach (amp.theguardian.com)
  8. ^ reducing availability (www.ahuri.edu.au)
  9. ^ key tax and other policy settings (link.springer.com)
  10. ^ National Housing and Homelessness Plan (www.dss.gov.au)
  11. ^ 2022 (cms.launchhousing.org.au)
  12. ^ 2020 (data.launchhousing.org.au)
  13. ^ pandemic emergency accommodation programs (cms.launchhousing.org.au)
  14. ^ highlighted by our new research (cityfutures.ada.unsw.edu.au)
  15. ^ barely 4% today (link.springer.com)
  16. ^ scale of unmet need (cityfutures.ada.unsw.edu.au)
  17. ^ have called for (everybodyshome.com.au)
  18. ^ Other than in Queensland (theconversation.com)
  19. ^ known long-term needs (cityfutures.ada.unsw.edu.au)

Read more https://theconversation.com/homelessness-much-worse-than-before-covid-leaves-agencies-battling-a-perfect-storm-243148

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping