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Chapter One: Scoping the Problem

Key points

Homelessness in Australia

Every night around 105,000 people are homeless.

Not all of these people are sleeping rough in public places. Many are living in temporary or makeshift accommodation, with family or friends, in specialist homelessness services.

The most widely accepted definition of homelessness in Australia describes three kinds of homelessness:

Homelessness does not simply mean that people are without shelter. A stable home provides safety and security as well as connections to friends, family and a community. Homelessness makes it very difficult to hold down a job or lead a healthy and stable life.

Who is homeless?

Homelessness can affect anyone. People who are homeless come from all age groups, and include women and men and people from all cultural backgrounds.

There are two major sources of information about people who are homeless.

Every five years the Australia Bureau of Statistics (ABS) provides a snapshot of the number of people who are experiencing homelessness. The ABS makes particular effort to count rough sleepers and people in specialist homelessness services. Using the Census it is possible to estimate the number of people staying in temporary accommodation who have no permanent address of their own.

Most specialist homelessness services are funded under the Supported Accommodation Assistance Program (SAAP). Services are required to collect data on service use. In addition to demographic data, the SAAP data records the reasons that people seek help, the services provided, and where people go when they stop receiving a service.

While there is a need to improve the information we have on homelessness, the Census and SAAP data provide a picture of homelessness in Australia.

On Census night 2006, there were 16,375 people sleeping rough (see Table 1). This represents 16 per cent of all people who are homeless.

Most rough sleepers live outside our major cities. While about two-thirds of Australia’s population live in capital cities, only 26 per cent of rough sleepers were in capital cities.

Table 1. Rough sleepers by state and region
  Capital cities
no.		 Regional centres
no.		 Rural and remote
no.		 Total
no.		 Capital cities
%		 Regional centres
%		 Rural and remote
%		 Total
%		 Rate per 10,000
no.
NSW 1,182 547 1,986 3,715 32 15 53 100 6
VIC 845 245 1,114 2,204 38 11 51 100 4
QLD 591 792 3,782 5,165 12 15 73 100 13
WA 767 207 1,418 2,392 32 9 59 100 12
SA 251 16* 581 848 30 2* 68 100 5
TAS 125 34 226 385 32 9 59 100 7
NT 488 144** 956 1,588 31 9** 60 100 75
ACT 78 0 0 78 100 0 0 100 3
Aust. 4,327 1,985 10,063 16,375 26 12 62 100 8

* Includes Whyalla and Pt Pirie. ** Includes Palmerston and Alice Springs.
Source:  Department of Families, Housing, Community and Indigenous Affairs, unpublished table from ABS Census 2006 data.

The number of rough sleepers is highest in Queensland (5,165) and New South Wales (3,715). The rates of rough sleepers per 10,000 people are highest in the Northern Territory (75 per 10,000), Queensland (13 per 10,000) and Western Australia (12 per 10,000).2

On Census night there were 58,619 men who were homeless (56 per cent) and 46,057 women (44 per cent) who were homeless. This difference increases for people over the age of 35, and experiencing homelessness, among whom over 60 per cent are men. More men sleep rough and live in boarding houses than women.

This situation is reversed for young people between the ages of 12 and 18, where young women make up 54 per cent of the homeless population. Women who were homeless were slightly more likely to stay in specialist homelessness services on Census night, often in women’s refuges or safe houses.
  
Homelessness occurs among people of all ages. Young people aged 12 to 18 are the largest group of people experiencing homelessness and the highest users of specialist homelessness services. Between 2001 and 2006, there was a fall in the number of young people aged 12 to 18 who were experiencing homelessness. Some commentators say that this is due to the impact of early intervention and prevention programs for this age group.3

Table 2. Change in homeless population by age, 2001–06
Age group 2001 2006 Change from 2001 (%)
Under 12 9,941 12,133 22
12–18 years 26,060 21,940 -16
19–24 years 10,113 10,504 4
25–34 years 16,567 15,804 -5
35–44 years 12,992 13,981 8
45–54 years 10,349 12,206 18
55–64 years 7,883 10,708 36
65 or older 5,995 7,400 23
Total 99,900 104,676 5

Source: Department of Families, Housing, Community Services and Indigenous Affairs, unpublished table from ABS Census 2001 and 2006 data.

Over the last five years the number of children who are homeless under the age of 12 has increased by 22 per cent. The vast majority of children who are homeless are with their parents.4  Many of these family groups are escaping violence, while a smaller group are homeless because of financial stress. Homelessness has a severe impact on children and may be the first step on a path to lifelong disadvantage.

The 2006 Census showed large increases in the number of older people who were homeless. Over 18,000 people aged 55 or over were homeless on Census night in 2006, 4,000 more than in 2001.

Single people make up three-quarters of the homeless population. Families with children who are homeless have increased by 11 per cent since 2001. Many of these families are sleeping rough.5

The SAAP data confirms that family homelessness has increased. The number of families with children who seek assistance from specialist homelessness services has increased by 33 per cent over the last five years.6  Families seeking accommodation are more likely to be turned away from SAAP than single people and are more likely to stay in crisis accommodation for longer than six months.7

Of all SAAP support periods, 22 per cent were provided to single-parent families headed by a woman and 1 per cent to single-parent families headed by a man. Domestic violence is the main reason women with children seek assistance from SAAP services (55 per cent).8

The rate of homelessness for Indigenous Australians is significantly higher than for non-Indigenous Australians. Indigenous Australians make up 9 per cent of the homeless population and 18 per cent of SAAP clients across Australia.9  More than a quarter of accompanying children in SAAP were of Aboriginal and/or Torres Strait Islander origin.10

Homelessness is an issue for Indigenous people living in both urban and remote areas. In 2003, Indigenous people comprised 10 per cent of clients in specialist homelessness services in urban areas, 21 per cent in regional areas, and 71 per cent in remote areas. Both urban and remote Indigenous people cited domestic and family violence as the most common reasons for seeking SAAP assistance. Indigenous clients were less likely to name accommodation difficulties as their reason for seeking support, but were twice as likely to cite overcrowding as a reason for seeking help.11 Eviction was a more common reason for accessing a specialist homelessness service for Indigenous people in urban and rural areas than for Indigenous people in remote areas.12

Some people experience homelessness only once. Over time this group of people are able to get back on their feet, find a house and return to a more stable life.

A smaller group of people experience repeated episodes of homelessness or stay homeless long term. This group of people are more likely to spend time sleeping rough and may move between services and different kinds of accommodation for many years. Approximately 12 per cent of SAAP clients have three or more periods of support every year. This means that they receive assistance, but present again after a few months because they are still homeless. This group of people is likely to also cycle through mental health services, boarding houses and other facilities.

Many people who use specialist homelessness services have difficulty finding alternative accommodation to move to after they have received support. Over the last five years the average length of time spent in specialist homelessness services has increased from 33 days to 50 days. The problem of finding secure affordable housing and, in some cases, supported accommodation to move out of a specialist homelessness service, is directly connected to the number of people who are turned away from specialist homelessness services because no beds are available.

Causes of homelessness

There are many causes of homelessness.

Many people who become homeless have struggled with considerable personal disadvantage throughout their lives. This may include poverty or long-term unemployment, poor education, violence, mental health problems, disability and substance abuse. For these people, the path into homelessness can start many years earlier.

A specific event can trigger homelessness. This may be losing a job, domestic violence, being evicted from stable housing or a period of high financial stress. Major changes and transitions, such as young people leaving home early, can place people at greater risk.

Stable and affordable housing

Housing affordability, particularly the cost of rent, has become worse in recent years. The greatest impact of the housing affordability problem is on low and moderate income earners in the rental market.

The National Centre for Social and Economic Modelling (NATSEM) estimated that in 2007, 1.1 million households (10 per cent of all households) were in financial stress including 685,197 private renter households (23 per cent of private renter households), 52,744 public renter households (13 per cent of public renter households), 283,471 owners with mortgages (10 per cent) and 50,144 owners without mortgages (1.6 per cent). There has also been a 30 per cent increase in the numbers of older Australians in housing stress between 2003 and 2007.13

The increase in family homelessness can be explained, in part, by declining housing affordability and financial stress.  Couples with or without children seeking accommodation due to homelessness most commonly cited eviction or being asked to leave their housing as the main reason for doing so.14  Being unable to pay the rent is a primary cause of eviction.

Some people have access to affordable housing but are still not able to maintain their tenancy. In 2006–07, 4,000 SAAP support periods were provided to clients who needed housing assistance and who came from public or community housing.15 Most of these people cited violence and personal issues as the reasons they were homeless.

In 2006–07, 1,933 people were evicted from social housing.16 These people had access to stable affordable housing but were not able to keep up with rent payments or maintain other aspects of their tenancy. Acute mental health episodes may mean that people forget to pay the rent, or unresolved family conflict may make someone’s housing untenable.

Domestic violence

Domestic and family violence continues to be the major driver of homelessness. Escaping violence is the most common reason provided by people who seek help from specialist homelessness services. Twenty-two per cent of people seeking help from specialist homelessness  services do so because they are escaping violence.17

Domestic and family violence is the principal cause of homelessness among women. Fifty-five per cent of women with children and 37 per cent of young single women who seek assistance from specialist homelessness services do so to escape violence.18

Many victims of violence will not seek assistance from specialist homelessness services but will stay with friends or family members in temporary arrangements.

Many service providers report that homelessness driven by domestic violence is different from other forms of homelessness. Many women who escape abusive, violent relationships return to the perpetrator numerous times and cycle in and out of homelessness. This may be because they have no money, family support or stable housing or their partner promises to stop the violence.19

Safety is often an ongoing problem for people who are escaping violence. Many women and children continue to experience violence after they have left the family home. In the best cases, victims of violence are supported both to find a safe home and to make contact with police to bring the violence to an end.

Long-term unemployment

People who are disconnected from the workforce for long periods of time are vulnerable to homelessness. While the long-term unemployment rate has been at historic lows for more than a decade, Australia still has the fifth highest proportion of people of workforce age in jobless households among Organisation of Economic Cooperation and Development (OECD) countries.20 People who find themselves locked out of the labour market, especially over a long period of time, can find it difficult to secure affordable housing.

Currently only 11 per cent of people who leave specialist homelessness services have a job to go to.21 Most working age people who are homeless or at risk of homelessness would like to earn an income, but face the obvious barriers of holding down a job without a home of their own. This may come on top of poor education and a lack of previous work experience.

Maintaining a connection with employment will help people who are homeless return to stable housing. For people who are homeless, getting work or learning new skills will improve their economic position as well as providing the social benefits of participation.

Family breakdown

Family or relationship breakdown is the second most common reason people seek assistance from specialist homelessness services. Ten per cent of SAAP clients cite relationship or family breakdown as the primary reason for seeking assistance. It is the main reason why males with children seek assistance from SAAP (19 per cent).22

Family breakdown is a large factor in youth homelessness. Young people and families in contact with youth homelessness services often cite family violence as reasons for needing assistance. Young people can be the victims of violence or may be violent toward other family members.

Mental health and substance abuse

In 2004–05, 12 per cent of SAAP clients reported a mental health problem, 19 per cent reported a substance use problem and another 5 per cent reported both a mental health and a substance use problem. The majority of these clients were men aged between 25 and 44 years.23  About one third of SAAP clients required intensive and/or ongoing assistance with mental health issues.24  

Rough sleepers and people who are chronically homeless are more likely to have complex needs such as mental health issues, substance abuse and disabilities. They are also more likely to experience chronic health issues and have a mortality rate three to four times higher than that of the general population.25

Mental health and substance use disorders can be key contributing factors leading to homelessness. Homelessness can be caused by mental illness and unstable housing arrangements can also contribute to the deterioration of mental wellbeing. People with severe mental illness who are without family, community and clinical supports are particularly vulnerable to homelessness.

A third of people who are homeless in inner city areas are estimated as having a severe mental illness.26 This estimate will be compounded by the high rates of homelessness and high prevalence of mental illness amongst young people aged 16 to 24 years.27

The evidence suggests that the longer clients with mental health problems are supported by specialist homelessness services, the more likely they are to move into public, community or rental housing rather than return to rough sleeping.28  Access to a range of longer-term supports and community-based services will increase the early intervention and recovery support options for people who are homeless with a mental illness and substance abuse disorders.

People leaving health care services, child protection and correctional facilities

Service providers report that many people come to specialist homelessness services soon after discharge from hospital. This occurs more frequently for people being discharged from mental health services. Some people in this group did not have stable accommodation before they were admitted to hospital. Others were discharged to stay with family or friends but did not have a long-term housing option. In the worst situations, people are discharged directly to specialist homelessness services.

Young people leaving care of child protection systems also report high levels of homelessness.29  Nearly half (45.2 per cent) of all people seeking the support of specialist homelessness services are young people under 18 years of age.30 Child protection systems have not been able to provide secure, stable accommodation. Service providers report that many young adults who are experiencing homelessness have recently left child protection systems and do not have the income or life skills to manage a home of their own.

A significant number of people who are chronically homeless were under the care of child protection systems in the past. 31 The number of children on care and protection orders and in out-of-home care has increased by 33.5 per cent from 2002­‑2006.32 This is a rapidly increasing population that is vulnerable to homelessness.

People leaving prison are also at risk of homelessness. In 2006–07, 1.3 per cent of homelessness service clients reported that they had spent time in the criminal justice system immediately before entering SAAP.33   People leaving gaol may not have any housing to go to or may return to live with family and friends in situations that are not sustainable.

Seven per cent of prisoners reported that they were homeless at the time of their arrest.34 An Australian Institute of Criminology study of housing and homelessness outcomes for ex-prisoners found that stable accommodation was likely to contribute to a decrease in reoffending and drug use. 35

With the numbers of people in the criminal justice system increasing over the last two decades, this is also a growing group of people at risk of homelessness.36

Impact of homelessness

Homelessness removes stability and connection in people’s lives. People who move away from their home and local community often leave behind important supportive relationships and networks. This makes it harder to participate in employment, maintain children’s education and retain contact with family and friends.

In addition to higher rates of mental illness, people who are homeless experience poor dental health, eye problems, podiatry issues, infectious diseases, sexually transmitted disease, pneumonia, lack of preventive and routine health care and inappropriate use of medication.37  

Children are particularly vulnerable to the traumatic effects of homelessness. It disrupts schooling and other important opportunities to build resilience that come, for example, from participation in sporting and cultural activities. Poor education is a risk factor in future episodes of homelessness. Children who have been homeless are more likely to experience emotional and behavioural problems such as distress, depression, anger and aggression.38

Homelessness often takes the form of living for long periods in marginal accommodation, rather than a single period of sleeping rough or staying in a specialist homelessness service. People may move home several times before they get long-term, stable housing. For children this may mean several new schools at a time when their education is already disrupted.

Homelessness can become part of a cycle of intergenerational disadvantage, in which younger generations in some families miss out on the opportunity to participate in the economy and the community. In some communities across Australia, families and individuals are caught in a cycle of low school attainment, high unemployment, poor health, high imprisonment rates and child abuse.39  Recent research into homelessness found that most of the homeless participants surveyed who had been homeless for the medium to longer-term, first experienced homelessness during their childhood.40  Australia cannot let this cycle of disadvantage continue.

There are major ongoing costs to government services as a result of homelessness. People who are homeless use hospital emergency services at higher rates than the general population to treat conditions and fix injuries that are made worse by being homeless.41 It is estimated that the long-term economic cost to the community of not assisting the 50,000 children who pass through specialist homelessness services each year is close to $1 billion per annum.42

Homelessness prevention services and services which work with clients to end their homelessness are good investments of public money. Recent research confirms that homelessness programs produce positive outcomes for their clients at relatively low cost and deliver whole-of-government savings in avoidable health, justice and police outlays.43  Addressing homelessness will boost rates of participation in the economy and community. People who were homeless will be able to join the workforce and share in the prosperity of the nation.

Homelessness in the next decade

It is extremely difficult to predict patterns of homelessness. Rates of unemployment and domestic violence, the cost of housing and the effectiveness of specialist homelessness services will all impact on the numbers of people who are homeless in the future.

If no additional action is taken, it is likely that homelessness will rise. It will take time for the benefits of the Government’s major reform agenda in the areas of housing, education, mental health and Indigenous policy to impact on the structural drivers of homelessness.

At the same time, particular subgroups vulnerable to homelessness are growing rapidly, such as children in care and protection,44 prisoners,45 and older people living in housing stress.46

Existing specialist homelessness services are at capacity and unable to improve outcomes without greater involvement of mainstream services and greater access to exit points such as permanent housing.

Currently, many people experiencing homelessness do not seek assistance from specialist homelessness services because beds are scarce. As service delivery improves and people move more quickly through these services into long-term housing, this latent demand may be released. This will mean that, in the short term, there may be increasing demand for specialist homelessness services.

Homelessness among families and children is already rising and likely to continue to be an important priority for specialist homelessness services. The potential impact of homelessness on young children is extremely serious and can only be addressed by a specific focus on their needs.

Young people leaving the child protection system are clearly at increased risk of homelessness. The increase in the number of young people in the child protection system may lead to a rise in homelessness among this group over the next decade.

While domestic violence rates in Australia have decreased slightly in the decade to 2005, the number of intimate partner homicides has remained stable.47 Violence will continue to be a major cause of homelessness unless rates of domestic violence fall significantly or new strategies are found to keep victims of violence, mainly women, safer in their homes.48

Over the last five years, the rate of homelessness has been relatively stable among adults. This includes the majority of people who are chronically homeless. Improvements in addressing homelessness among young people may result in a fall in the number of adults aged between 25 and 35. The average age of people who are chronically homeless may rise, suggesting a greater need for specialist services that focus on older people who are homeless.

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Chapter Two: The White Paper Vision

Executive Summary