Australia’s housing crisis
Unaffordable housing is a growing cause of homelessness
Australia is experiencing a housing crisis, putting more people at risk of housing insecurity and homelessness. Contributing factors include rising rents, higher mortgage repayments, a shortage of affordable housing, and limited access to social housing.
The fact is that housing affordability is an increasingly common contributor to homelessness in Australia. According to the Australian Institute of Health and Welfare (AIHW), 36% of Specialist Homelessness Services (SHS) clients in 2024–25 reported housing affordability stress as a reason for seeking assistance, up from 23% in 2014–15.
What is driving the Australian housing and rental crisis?
A lower-income household is considered to be in housing stress when it spends more than 30% of its gross income on housing costs — a situation that is common for many Australians.
The rising cost of living means more people are being stretched to the limit, struggling to cover rent or mortgage payments along with essential bills like electricity.
In addition, there are fewer properties available to rent as the population has grown. This is partly due to the return of international students and other migrants following the COVID-19 pandemic, increasing the demand for rental housing.
Demand for affordable housing has not been met by new supply due to higher interest rates, rising construction costs, as well as constraints in labour and the supply chain.
When there are fewer properties available to rent or buy, prices are driven higher, which continues to place stress on people’s ever-tightening budgets. This leads to a housing crisis.
Housing stress and The Salvation Army
The Salvation Army sees firsthand the impact of housing stress on individuals and families through our Emergency Relief centres. We support people experiencing or at risk of homelessness, as well as those going through financial hardship or facing a family crisis. Our services provide compassion, a listening ear, and practical support to help people move forward.
In May 2026, The Salvation Army's Centre for Mission Impact team 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.
It showed:
- 43% of respondents said housing costs were their biggest financial concern
- After covering housing costs, households were left with $280 per week, equating to less than $40 per day
- Due to a shortage of money in the past 12 months, 76% had to choose between paying the rent or mortgage, or buying food
- 38% of private renters said their rent or board had increased in the past 12 months, and 27% were behind on payments
- 48% were unable to afford to move even if they wanted to
“My mum and I have made major sacrifices just to keep a roof over our heads. Rent is $550 a week and we live week to week off her casual wage, with no savings and no backup. Most weeks, we can barely afford food — sometimes we skip meals or rely on cheap basics just to get by. Every cent goes to rent because we’re terrified of being evicted.”
– 31-year-old woman from Victoria
Source: Russell, C., & Verrelli, S. (2026). The Red Shield Report 2026: Falling short. The Salvation Army Australia.
Hope for Australians in need
Thankfully, when people reach out for support early, The Salvation Army can often help. We do this in a variety of ways, including assisting with living costs, supporting debt reduction and repayment plans, advocating for tenants, and helping people find more affordable housing.
As of 30 June 2025, Salvation Army Housing (SAH) managed nearly 2000 properties throughout Australia, providing long-term, transitional, and crisis housing to almost 3000 people.
