Australia’s housing crisis

Unaffordable housing is a growing cause of homelessness 

Australia is experiencing a housing crisis that is contributing to more people being put at risk of losing their homes and experiencing homelessness. This could be because a mortgage rate or rent price has increased beyond a person’s capacity, there is no affordable home close to employment, or the social housing waitlist is years too long. The fact is: housing affordability is the most rapidly growing cause of homelessness in the past four years (source: Australian Homelessness Monitor Executive Summary 2022 - Launch Housing). 

Unfortunately, there are many factors at play which are causing the current housing crisis. A high cost of living means more people are pushed to the limit with their housing costs (rent/mortgage as well as bills such as electricity). A household is in housing stress if more than 30 per cent of its income is spent on housing costs.  

There are less properties available to rent as the population has grown and international students and skilled/family migrants returned to Australia post-COVID. The demand has not been met by new buildings due to high interest rates, difficulty obtaining supplies, higher building costs and low consumer confidence. 

When there are less properties available to rent or buy, prices are driven higher, which continues to place stress on people’s ever-tightening budgets. For some, this leads to a housing crisis. 

Housing stress and The Salvation Army 

The Salvation Army sees first-hand the impact of housing stress on individuals and families at our Emergency Relief centres. Whether it’s people accessing support because they are financially vulnerable to experiencing homelessness, are facing a family crisis or are already experiencing homelessness, our centres offer compassion, a listening ear and practical support for the road ahead. 

In May 2023 we released findings from a study among people who sought assistance from a Salvation Army Emergency Relief centre in the past 12 months to understand their situations. Our research revealed the following: 

• Three-quarters (75 per cent) of all respondents were experiencing housing stress, spending more than 30 per cent of their disposable income on housing, putting them at increased risk of housing instability and homelessness.  
• More than one in four (26 per cent) respondents were unable to pay their rent or mortgage on time in the past year, compared to only seven per cent of the Australian population.  
• More than one in four (27 per cent) respondents were behind on their rent, mortgage or board payments, and almost 80 per cent of those in arrears were behind by up to four weeks.  
• After paying for essential living costs such as housing, groceries, health, fuel and utilities, respondents had only $40 left over each week — or less than $6 per day to save or spend on other household expenses.  
• Approximately three in 10 reported: 
• Finding and maintaining a safe and affordable place to live was one of their greatest challenges in the past year (29 per cent). 
• Experiencing or being at risk of becoming homeless was one of their greatest challenges in the past year (31 per cent).

Read The Red Shield Report 2023: At breaking point

Thankfully, when people reach out for support early, many times we can help them through their housing crisis and prevent homelessness by supporting living costs, working on debt reduction/repayment, advocating for their tenancy, helping them find a more affordable place to live, and more. 

In 2021-22, The Salvation Army provided: 

• 3120+ people with housing  
• 900+ people with longer-term housing  
• 670 people with transitional housing  
• 140+ people with crisis housing 

Source: The Salvation Army Annual Report 2022