Homelessness and housing stress to rise steeply in 2021, says report

A new report finds homelessness will rise by nine per cent and housing stress by 24 per cent across Australia next year.

Pre-COVID, almost 150,000 people were on the nation’s social housing waiting list, the report says. Picture: Tim Pascoe

Homelessness is set to surge 9 per cent and 24 per cent more Australian families are predicted to experience housing stress in 2021 because of COVID-19.

NSW will be particularly hard hit because of a higher proportion of households needing two incomes to cover mortgages or rent, an Equity Economics study has revealed. Housing stress is projected to rise by 42 per cent next year in NSW, and homelessness by 19 per cent.

The study, commissioned by homelessness advocacy group Everybody’s Home, says a $7bn federal government investment in social housing could create 30,000 social housing units and boost the national economy by $18bn annually over the next four years while creating 18,000 jobs each year. “An additional 30,000 social housing units would reduce the number of Australians experiencing homelessness by around 4500 per year and save $135m in direct support costs,” it says.

 

Pre-COVID, almost 150,000 people were on the nation’s social housing waiting list, the report says, calling on all levels of government for extra commitment.

The Morrison government opted not to include a big social housing package in its recovery budget in October, but some state governments have announced substantial funding programs.

“The Victorian government has led the way, announcing a $5.3bn investment to build social housing and support economic recovery in Victoria,” the report says. “NSW announced a $813m investment (but) more investment is needed across Australia.”

While NSW is the hardest hit, Victoria is expected to see significant rises in housing stress (32 per cent next year) and homelessness (13 per cent).

Tasmania is also projected to suffer, with housing stress up 26 per cent and homelessness up 14 per cent in 2021.

“Homelessness and housing stress are a hothouse for anxiety, depression, and family breakdown. It’s in everyone’s interest to prevent this,” Everybody’s Home spokeswoman Kate Colvin said.

“This modelling paints a frightening picture of the months and years ahead. No child should go to school unsure if their parents will lose the house before they get home.”