Housing unaffordability forcing Australians into deeper hardship

Latest research by The Salvation Army Research team uncovers the hidden impacts of the ongoing homelessness crisis across Australia.

By Carolyn Russell (Research Projects Officer) and Stefano Verrelli (Research Analyst)

“Every cent goes to rent because we’re terrified of being evicted.”

That is how one 31-year-old woman from Victoria described life for herself and her mother. Their rent is $550 a week. They live week to week on her mother’s casual wage, with no savings and no backup. Most weeks, they can barely afford food. Sometimes, they skip meals or rely on cheap basics just to get by.

For now, they still have a roof over their heads. But keeping it comes at a cost — less food, no savings, and constant fear about what might happen next.

This year’s Red Shield research surveyed more than 4400 people who had recently accessed support from The Salvation Army Doorways emergency relief services. Results show that housing insecurity and the risk of homelessness were widespread. Nearly 4 in 5 people surveyed (79%) were living week to week, with no savings to fall back on in an emergency.

That means a rent rise, an unexpected bill or a change in income can quickly become a crisis. This Homelessness Week, the lesson is clear — to end homelessness for good, we need to act before people are pushed into crisis.

Housing costs swallowing weekly budgets

Housing costs placed a heavy and often, overwhelming burden on many households surveyed in this year’s research. For the typical respondent, housing costs — including rent, mortgage repayments or board — were the largest weekly expense, consuming nearly half (46%) of their household’s already limited income.

For one 74-year-old woman on the Age Pension in Victoria, the pressure was devastating — “We rent privately and all we can do is pay the rent to have somewhere to sleep. We don’t have any money to eat, pay bills, or pay for petrol.”

When almost half of a household’s income goes towards housing, there is very little left for food, electricity, transport, medicine and other essentials. Close to half of people surveyed (45%) said housing costs were their biggest financial concern.

Rent or mortgage first, then everything else

Many survey respondents reported paying for housing first because the alternative felt too frightening. But paying the rent or mortgage does not always mean someone is safe or financially secure.

Research results showed that after paying housing costs and other basic expenses, households were falling short by $14 each week. Nearly 2 in 5 people (37%) had to choose between paying the rent or a mortgage and buying food at least weekly. Almost one in three (32%) said they skipped meals on a daily basis due to a shortage of money.

One 37-year-old woman from Victoria understood exactly what was at stake because she had experienced homelessness before.

“My rent is always paid so I’m not going to end up homeless, which is where I was a couple of years ago,” she said. “So, I just go without whatever I need to, to keep a roof over my head.”

Keeping up with rent can mean going without food, medication or other essentials so people can avoid losing their home. Many also described sleepless nights, anxiety, weight loss and exhaustion caused by ongoing stress.

The fear of homelessness is already real

For many survey respondents, homelessness did not feel like a distant possibility. Even among people in stable housing, more than 1 in 4 (27%) feared they would lose their home and become homeless.

That fear was grounded in real pressure. 3 in 5 people (60%) said they had been unable to pay their rent or mortgage on time in the past year because they did not have enough money.

For one 60-year-old single mother from New South Wales, the fear had become part of daily life — “[I] worry every day about homelessness. [My] car isn’t big enough for all of us to sleep in.”

For some people, that fear had already become reality. 1 in 10 people surveyed (10%) had stayed in a homelessness shelter in the past 12 months, and 1 in 6 (16%) had couch surfed or lived in their car.

This was the reality for one 36-year-old woman from South Australia, who found herself sleeping on the floor of her mother’s lounge room after being unable to secure suitable housing. “I’ve sacrificed privacy, comfort,” she said, and experienced “a decline in health.”

These experiences show that homelessness is often hidden. It is not only sleeping rough in a street or park. It can also mean staying temporarily with friends or family, sleeping in a car, or living in crisis accommodation. Although these arrangements can be a vital source of shelter and support, they are not the same as having a safe, stable and secure home of one’s own.

Ending homelessness: Action needed before crisis hits

Safe and secure housing is a fundamental human right and should not an impossible ask. The Salvation Army believes everyone should have a place to call home, with enough income left over for food, bills, transport, healthcare and basic needs.

But for many people who took part in this year’s Red Shield research survey, that safety and security was often out of reach. Rising housing costs and financial stress meant people were making serious sacrifices just to keep a roof over their heads. For some, the risk of homelessness was already at the door.

To end homelessness for good, we must act earlier. That means investing in more safe, stable and affordable housing, and ensuring people in hardship have enough to live on with dignity.

This Homelessness Week, learn more about the challenges people face to stay safely housed. Read the Red Shield Report — Falling Short, to understand the growing impact of housing stress and homelessness, and how The Salvation Army is supporting people at risk of or experiencing homelessness across Australia.