December 9th 2024.
A recent report has shed light on the alarming increase in homelessness in Australia. The Australian Homelessness Monitor has found that since the year 2019-2020, there has been a significant rise in homelessness levels, surpassing the pre-COVID era. This has been attributed to a combination of factors, including rental inflation and a shortage of available housing.
The report gathered data from specialist homelessness services and local government authorities, who have observed a worrying trend. More than half of these services have reported a significant increase in homelessness cases since mid-2024, compared to the same period last year. This is a cause for concern, as it indicates a growing number of individuals and families in need of support.
The rental crisis has been identified as a major contributing factor to this rise in homelessness. The national median rents have increased by a staggering 51% between March 2020 and September 2024. Even when adjusted for inflation, this still amounts to a 29% increase. Additionally, there has been a decline in tenancy turnover and a shortage of newly built homes for rent. This has led to a situation where rent increases have outpaced earnings growth, making it difficult for low-income and vulnerable households to afford housing.
As a result, there has been a significant increase in the number of people seeking help from homelessness services due to housing affordability stress. This has risen by over a third during the 2020-2024 period, making it the only main reason for seeking assistance that has seen a significant increase. Despite a slight expansion of social housing between 2018-2023, the growing population means that the proportionate share of social housing has continued to decrease.
The rise in homelessness has put immense pressure on homelessness services agencies. They are struggling to keep up with the increasing caseloads, while also facing a decline in the number of new support periods. This indicates a decline in their capacity to provide assistance to those in need. While there has been a median 12% increase in monthly caseloads nationwide, there have been significant differences between states. Queensland has reported the largest increase, followed by Western Australia. Additionally, the average duration of service support has gone up by 44% in the past five years.
The groups most disproportionately affected by homelessness include families, people with disabilities, employed individuals, and older women. This suggests that homelessness is now impacting a wider section of the population. As the number of homeless individuals continues to rise, homelessness services are finding it increasingly challenging to prevent homelessness. They are now focusing on providing support to those who are already homeless, rather than those at risk of becoming homeless.
The report also highlights the structural issues within the housing market that have led to this crisis. These problems have been present for decades and have been further exacerbated by the COVID-19 pandemic. The report emphasizes the need for adequate provision of social housing by the government to protect low-income and vulnerable individuals from rental stress and insecurity in the private market. Additionally, measures such as enhanced tenancy rights and adequate social security rates will also play a crucial role in addressing the issue of homelessness in Australia.
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