Login
iscover
An industry report has underscored the need for the government to tackle the worsening rental crisis, highlighting that record-low rental vacancies and soaring rents have driven a 63 per cent rise in Australians at risk of homelessness.
Consultancy firm Impact Economics and Policy’s Call Unanswered report has revealed that the number of Australians at risk of homelessness has risen by 63 per cent to 3 million total people, straining specialist homelessness services to the extent they are forced to turn away those in need of urgent help.
The report surveyed 23 specialist homelessness services over two weeks in September 2024, with responses showing that 83 per cent of services were unable to answer phone calls, 74 per cent could not respond to urgent emails, and close to 40 per cent of services were forced to close their doors during operating hours.
As a result of these strained conditions, the report found that families with children in need of crisis accommodation were turned away on one in five days surveyed, while individuals without dependents were turned away on one in two days.
Weighing in on these findings, the CEO of Homelessness Australia, Kate Colvin, stressed that “demand for homelessness has erupted and the system is so under-resourced that people who are homeless can’t get in front of a worker who can help them”.
“With more than 3 million Australians now at risk of homelessness, services are forced to close their doors, leave calls unanswered, and turn away families with children on one in five days,” Colvin said.
Impact of growing rental stress
The firm’s report also illustrated the worsening state of Australia’s broader housing crisis, with rental vacancies dropping to record lows since mid-2022 and rents increasing 18.5 per cent over the past two years.
In September 2024, the report stated that the national vacancy rate was 1.2 per cent, noting that this was half the rate recorded in January 2020, and represented 35,000 fewer rental properties available across the country.
Delving into the state of the country’s strained rental market, the firm explained that changing housing demand and a shortage of affordable rental properties have led to fewer available options, driving up rents and intensifying competition for the already limited supply.
Alongside rising cost-of-living pressures, the firm also noted that the consumer price index (CPI) measure of rents has risen more in the past two years than in the previous 10 years – this sharp growth also reflected in capital city rents increasing 18.5 per cent since September 2022.
Highlighting the severity of these conditions, Colvin emphasised that “people who could have afforded private rentals just a few years ago are now resorting to couch surfing, sleeping cars or pitching a tent”.
Through the sudden tightening of vacancies and rapid growth in rental costs, Impact Economics and Policy highlighted its recent modelling estimates that the number of households experiencing rental stress has increased by 141,000 or 17.9 per cent since the 2021 census.
The report’s author and principal at Impact Economics and Policy, Dr Angela Jackson, commented that “cost of living increases always hurt those on lower incomes the most – and these figures highlight the extent of hardship”.
“Most of us would expect that if we needed help with finding somewhere to sleep tonight or to avoid eviction, we would receive that help – but that is not the reality for many with homelessness services overly stretched,” Jackson said.
Victoria sees sharpest increase in people at risk of homelessness
The rise in Australians at risk of homelessness was particularly sharp in Victoria, surging by 67 per cent between 2016 and 2022 and bringing the number of affected Victorians from 591,000 to 987,000.
This increase was linked to a rise in the number of Victorian households experiencing rental stress, which increased by 43,100 since the 2021 census, marking a 23.1 per cent statewide increase.
Noting that “almost 1 million Victorians are now at risk of homelessness”, the CEO of the Council to Homeless Persons, Deborah Di Natale, described this outcome as a “shocking rise that has unleashed a tidal wave on services”.
“Under-resourced services simply can’t go on like this, with people falling through ever-widening cracks as the worst rental crisis in living memory worsens,” Di Natale said.
To improve these conditions, Jackson highlighted the need to simultaneously address structural issues while also increasing the support provided “today to deal with the current crisis”.
Di Natale similarly stressed the need for funding for homelessness services to be increased, including greater investment in Housing First’s homelessness outreach and prevention programs, to enable staff to “respond to everyone seeking help”.
You are not authorised to post comments.
Comments will undergo moderation before they get published.