The Australian homeless camping problem

Causes of Australia’s homeless camping problem

Homeless camping is the consequence of a combination of systemic shortfalls and personal vulnerabilities. Below, we dissect the main reasons behind this form of homelessness in Australia.

 The housing crisis

A lack of housing supply, rising living costs and prolonged high interest rates have placed serious pressure on Australia’s housing market.

As rents continue to climb faster than incomes, many low-income households are being pushed out of stable housing and into insecure living situations. When there’s no buffer, even a small setback like job loss, illness or an unexpected bill can lead to eviction.

At the same time, rental demand continues to exceed supply. In tight markets, landlords can be selective, often choosing tenants with higher incomes and stronger financial stability.

This makes it harder for those already under pressure to secure a home. With housing out of reach, many people can be left with no option but to sleep rough.

Learn more about Australia’s housing crisis and its impact on homelessness.

Short-term stays

Short-stay accommodation is another contributor to the Australian homeless camping problem, particularly in regional and coastal communities.

When homes are used for short-term holiday rentals instead of long-term lets, it reduces the number of properties available to local residents. This limited supply places upward pressure on rental rates and can make it harder for people to secure affordable housing.

There are also broader community impacts. As housing availability tightens, towns can begin to shift away from serving long-term residents toward meeting the needs of visitors. This can affect access to essential services, workforce stability and the overall character of a place.

For example, as of December 2024, around 17.7% of all homes in the Byronshire were listed on Airbnb.² By 2025, median house rents in Byron Bay had reached approximately $1,500 per week, with a 15.4% increase over 12 months.³

This level of demand and cost has contributed to rising housing stress and homelessness locally. The 2025 Street Count by the NSW Department of Communities and Justice recorded 291 people sleeping rough in the Byron Shire local government area, the second-highest figure in the state.⁴

Unfortunately, this pattern isn’t limited to a single destination. Throughout Australia, people in remote and very remote areas are significantly more likely to need support. In 2024–25, the rate of SHS clients in these areas was 3.7 times higher than in major cities.⁵

Therefore, while short-term accommodation supports local economies, without the right balance, it can increase homeless camping in the communities people call home.

Overstretched support services

When housing, income support and essential services don’t keep pace with demand, people can run out of options quickly.

Community housing providers play a critical role in delivering and managing social and affordable housing, but supply simply isn’t keeping up with demand. Properties are allocated based on need through state-based systems, with demand far exceeding availability.

This means many people remain on waiting lists for extended periods, not because services are unavailable or unwilling to help, but because there are not enough homes.

Across New South Wales, Queensland, Victoria and South Australia, waiting lists can stretch for years. For people already under financial strain, that delay can mean extended periods in unsafe or unstable living conditions.

There are also gaps in support during key life transitions. People leaving hospital, prison, or mental health care don’t always have access to coordinated housing and support services. Without a clear pathway into stable accommodation, many are at real risk of homelessness.

Meanwhile, income support payments such as JobSeeker, Youth Allowance and Commonwealth Rent Assistance haven’t kept up with rising rents. In tight rental markets, even a small gap between income and housing costs can be enough to push someone out of a tenancy.

When these shortfalls combine, support often arrives too late, and more individuals are left with no choice but to sleep rough.

Family and domestic violence

Family and domestic violence is a major cause of homelessness in Australia. It includes physical violence, coercive control and ongoing abuse that makes a home unsafe. For many, leaving is urgent and unavoidable.

Women, children and young adults are most affected. When they leave, it often happens in a matter of days, with little time to plan and nowhere secure to go.

With crisis accommodation frequently full, some are left with no safe alternative. This can mean sleeping in cars, relying on short-term arrangements, or turning to tents and makeshift shelters.

Mental health struggles

Mental health challenges are closely linked to homeless camping in Australia. In 2024–25, around 88,800 people with a mental health condition sought support from SHS.⁶

That’s because mental health conditions make it harder to maintain stable housing. Ongoing distress, difficulty managing daily tasks, and the impact of trauma or substance dependence can affect employment, relationships and financial security. Over time, these pressures can lead to the loss of a tenancy.

The personal consequences of living in a homeless encampment

Homeless camping takes a serious toll on people’s lives, with personal effects ranging from ill health to mounting debt.

Poor physical health

When you’re living on a campsite, basic health needs are far more difficult to manage.
Firstly, exposure to the elements is constant. Cold snaps, heatwaves, storms and smoke become a part of everyday life. Over time, this exposure can increase the risk of respiratory illness and aggravate existing conditions.

Additionally, basic facilities aren’t guaranteed. Access to clean water, toilets and showers is usually limited or inconsistent. Even preparing food safely becomes a challenge, with makeshift cooking setups sometimes creating fire risks around tents and vehicles.

Without the means to properly care for them, small issues like cuts or infections can escalate quickly. What starts as a minor injury can develop into something far more serious without early treatment.⁷

Unfortunately, healthcare is often out of reach. When each day is focused on finding somewhere safe to sleep or something to eat, medical appointments can fall to the wayside.

Furthermore, chronic health conditions tend to be more common among people experiencing homelessness. Illnesses such as heart disease, diabetes, asthma and hypertension are seen at higher rates, often linked to ongoing stress, limited nutrition and harsh living conditions.⁸,⁹

Mental health problems

Homeless camping places intense and ongoing pressure on a person’s mental health. Each day is spent finding somewhere to sleep, protecting belongings and avoiding harm or being moved on.

This constant stress can lead to the development of conditions like anxiety, depression and post-traumatic stress disorder (PTSD).¹⁰

Support isn’t always easy to access. Without regular healthcare, mental health issues can go untreated. Some people withdraw, while others turn to substances to manage stress and emotional strain. While it may provide short-term relief, it often deepens the problem.

Stigma adds another barrier. Fear of judgment or negative past experiences can stop people from reaching out, even when help is available.

Insecure employment

Without a safe and stable place to live, finding and maintaining a job becomes a real challenge.

Basic day-to-day needs can quickly become barriers. Reliable sleep, clean clothes, a charged phone and access to the internet are not guaranteed, yet they are essential for preparing for interviews, communicating with employers and showing up consistently to work.

These are the same things people need to prepare for interviews, communicate with employers and show up consistently to work.

Stigma adds another layer. Many people don’t feel safe disclosing their situation to employers, even when support might be available, because they’re concerned about being judged or treated differently.

This is an incredibly difficult cycle to break. With no steady income to build savings, housing becomes even more out of reach.

Safety risks

Living in a homeless encampment comes with real dangers, especially where limited resources or substance use result in rising tension.

With no proper security in place, people sleeping rough are more exposed to violence, harassment, theft and other forms of victimisation.11 These risks can be especially acute for women, young people and LGBTIQ+ people, who may already face heightened risks of abuse, discrimination or exploitation.¹¹

Moreover, important belongings can be lost or stolen, including identification, medication and contact details. Replacing these isn’t easy, and delays access to services like Centrelink, healthcare and housing support.

Fines and debt

Homeless camping can sometimes lead to fines from council officers, such as for sleeping on public land or staying in a vehicle overnight.

These penalties are rarely affordable for someone experiencing homelessness.

Therefore, they can build up quickly, creating debt that’s tough to resolve and, in some cases, leads to further involvement with the justice system.

Over time, financial challenges stack up, making it even more difficult for people to move forward.

The impacts of homeless camping on our communities

Homeless camping is felt across the entire community. It can change how public spaces are used, harm the natural environment¹², and affect local economies.

Let’s take a closer look at each consequence.

Environmental and infrastructure damage

Public spaces aren’t designed for long-term living, and over time, this can place pressure on natural environments.

Areas such as riverbanks, reserves and coastal dunes can be affected as people try to create safe and usable spaces.¹³ Without access to facilities, waste and litter build up, leading to pollution, health concerns and a growing need for clean-up services.

Shared infrastructure can also be impacted. Park amenities, seating and other facilities may wear down more quickly or require repair, adding to the workload for local councils.

Community culture and cohesion

When public spaces are used for long-term camping, it can change how those spaces are experienced by everyone.¹⁴

People may feel less certain about using parks, playgrounds or walking tracks, particularly where shared space use becomes less predictable. Concerns can arise around things like open fires, animals or vehicle access.

These situations can lead to opposing views within the same neighbourhood. Some residents may call on the authorities for stronger enforcement, while others champion more empathetic, practical and sustainable support.

Over time, these differences can create tension that breaks the sense of connection communities depend on.

Economic losses

There are also wider impacts on local economies, with each person sleeping rough estimated to cost the community $25,000 per year¹⁵.

Firstly, visible homeless camping may influence visitor numbers and local business activity in regional communities that depend on tourism.

While Australian research hasn’t yet directly measured the effect of encampments on visitor numbers, international evidence supports this link: tourism officials in San Francisco reported that homelessness was the number-one complaint in hotel surveys, and attributed a shortfall of hundreds of thousands of expected visitors to the issue.¹⁶

Councils also carry additional costs. Managing public spaces, responding to community concerns and maintaining infrastructure all require ongoing resources.

At a broader level, when people are unable to access stable housing, it affects workforce participation17, and in turn local spending and long-term economic stability.

These impacts are complex, but the direction forward is clear. Improving access to safe, stable housing supports individuals and helps communities remain strong, connected and resilient.

How we can combat homelessness in Australia

Addressing homeless camping means responding to immediate needs while also resolving the shortage of safe, affordable housing that sits behind it.

Here’s how we can tackle this issue together:

Shifting community perspectives

How we respond as a community matters. People sleeping rough should be treated with respect and dignity. Simple actions like sharing information to make them aware of local support services or responding with compassion can make a huge difference.

Balanced media coverage plays a role here. When stories include the voices of people with lived experience, it helps build a clearer picture of homelessness that chips away at stigma.

Moving away from judgment and towards informed, respectful engagement helps to foster more empathetic communities. This awareness and compassion encourage people experiencing homelessness to seek support.

Calling for housing system reforms

At Home In Place, we believe the issue isn’t where people are camping. It’s why they have no other option. Real progress comes from reducing the need to live in public spaces, not moving people from one location to another.

Clearing an encampment may remove tents from a park for a short time, but without suitable housing alternatives, people are often forced to relocate to another public site.

This approach can also have financial consequences for the community. For example, a chronically homeless person draws on roughly $48,000 worth of government-funded services in a single year. Move that same person into permanent supportive housing, and the figure drops to around $35,000. That’s more than $13,000 saved per person, per year, from one change.¹⁸

That’s why lasting solutions require more than local government rules and regulations. When removals aren’t supported by access to permanent housing, they can disrupt lives without improving outcomes.

Expanding the supply of affordable housing is key to solving this problem. But providers like Home In Place can’t do this alone.

We need long-term public investment to acquire, build and manage more properties that meet a range of needs. This requires coordinated action across all levels of government, along with homelessness services, health providers, legal services and communities.

That’s why we’re calling for a clear commitment from the Australian government. Building one in ten new homes as affordable housing would significantly improve access and help reduce housing pressure over time.

Find out more about our One in Ten campaign.

Investing in frontline and wrap around services

Affordable housing supply and wraparound support are essential to helping people move out of rough sleeping and sustain long-term housing.

Across many communities, local councils work alongside Specialist Homelessness Services, outreach teams, council rangers, health providers and community organisations to identify people sleeping rough and connect them with crisis accommodation, healthcare, income support and other practical help where available.

However, these partnerships only work when frontline services have the capacity to respond. Without enough outreach workers, support staff and accommodation options, people can be referred into a system that is already stretched.

Demand often exceeds the resources available.

Increased funding, including for after-hours outreach, would help services reach people earlier, respond more quickly and provide support when people are most at risk.

Breaking the cycle of rough sleeping requires more than a one-off referral. It requires stable housing, sustained casework and wraparound services that address health, income, safety and social connection.