The most common causes of homelessness in Australia

Homelessness is more than just a lack of shelter—it’s the absence of secure and stable housing that meets basic comfort, safety and privacy needs. Tackling such a complex issue demands an understanding of its origins in each case. But what causes homelessness?

This difficult experience is driven by a tangle of systemic, structural, and personal factors, affecting individuals from all walks of life.

In this article, we’ll explore the key factors that cause homelessness in Australia, who is most vulnerable, and why. Read on to discover the most common contributors to this crisis and how Home In Place supports individuals caught in its cycle.

What are the reasons for homelessness in Australia?

The main reasons for homelessness in Australia include a lack of affordable housing, domestic and family violence, financial hardship, mental health issues, substance abuse, and family breakdowns.

These factors often work together to push many people into homelessness, particularly vulnerable groups like women, children, and those with mental health challenges.

Keep reading to learn more about what causes homelessness in Australia.

Domestic and family violence

Domestic and family violence is the leading cause of homelessness in Australia. It involves any violent, controlling, or threatening behaviour that instills fear in a family member, forcing many victims—especially women and children—to flee their homes with no clear plan of where to go next.

Often left with few safe options, these individuals may end up sleeping in cars, seeking refuge in shelters, or living on the streets. As a result, women who experience domestic violence make up the largest group seeking help from specialist homelessness services. In 2022-23 alone, about 104,200 victims of domestic violence turned to these services for support.

This type of violence is also a significant driver of youth homelessness. According to Mission Australia’s Youth Survey Report, one in six young people reported experiencing some form of homelessness.

Without adequate support services, those fleeing domestic violence—particularly women and young people—are at risk of falling into patterns of substance abuse and financial hardship, making it even more difficult to find a stable home.

Mental health conditions

In 2022-23, around 85,300 Australians with mental health conditions turned to specialist homelessness services for support. Moreover, almost 2 in 5 Australians aged 16–85 who experience homelessness report having had mental health issues within the past year – nearly double the rate in the general population (21%).

This stark difference highlights how deeply intertwined mental health struggles and housing instability can be.

Mental health conditions that amplify distress and hinder daily decision-making can disrupt job stability, strain personal relationships, and lead to financial setbacks—key factors that make finding or keeping a home even more challenging.

From there, the instability of homelessness worsens these conditions. Without proper treatment and support services, many are left stuck in a relentless struggle between finding stability and managing their mental health.

High rental rates and low incomes

Australia’s housing crisis is a major driver of homelessness, with rent prices surging far beyond what many people can afford. As rents increase and wages fail to keep up, more Australians find themselves squeezed out of stable housing and into precarious living situations.

The private rental market has become a battleground, with limited income support leaving countless families struggling to make ends meet.

Low-income households are often forced to spend most of their earnings on rent, leaving little room for other essentials. One unexpected setback—like losing a job, falling ill, or an unexpected bill—can quickly spiral into homelessness.

And with demand far outstripping supply, landlords tend to prioritise applicants with stronger financial profiles, making it even harder for vulnerable groups to secure a place to live.

Support programs like Commonwealth Rent Assistance (CRA) aim to bridge the gap, but the reality is that they fall short of covering today’s soaring rental prices.

For instance, in Victoria, 47% of households receiving CRA are still caught in rental stress, underscoring the urgent need for better solutions to tackle the housing affordability crisis.

Systemic shortfalls

Homelessness isn’t just about individual circumstances—it’s often a symptom of broader societal failures. When the safety nets meant to catch vulnerable people are weak or missing, the risk of homelessness escalates.

A prime example is the shortage of affordable housing across Australia, leaving many without a secure place to call home.

Beyond accommodation, our support systems for those facing financial hardship, job loss, or transitioning from hospitals, prisons, and mental health facilities often fall short.

Without proper intervention, these gaps leave people without the resources they need to rebuild stability, contributing significantly to the homelessness crisis.

Who is most at risk of experiencing homelessness?

No one is immune to the factors that cause homelessness, regardless of their background or circumstances. That said, certain groups face heightened risks due to systemic barriers and specific vulnerabilities.

Key demographics include Aboriginal and Torres Strait Islander communities, older women, and young people. Here’s why these groups are disproportionately affected:

Indigenous Australians

Aboriginal and Torres Strait Islander people make up around 3.2% of Australia’s population but represent a staggering 20% of those experiencing homelessness.

This overrepresentation is linked to historical and systemic disadvantages, such as the legacy of colonisation, intergenerational trauma, and ongoing discrimination.

Additionally, many Indigenous families experience overcrowded living conditions due to a shortage of affordable and culturally appropriate housing options.

Women over 55

Older women are one of the fastest-growing demographics among those facing homelessness, with over 7,300 currently affected.

Many of these women have spent their lives caring for family, which can leave them with limited superannuation and financial insecurity in later life. Divorce, the death of a partner, and the rising cost of living further increase their risk.

Importantly, this homelessness is often hidden, as these women may couch-surf with friends or live in overcrowded housing – making their struggles less visible but no less severe.

Minors

Young people, particularly those from single-parent households or escaping domestic violence, face significant risks of homelessness. In 2021-22, almost 30% of those accessing specialist homelessness services were under 18 years old.

Vulnerable youth often lack the resources or support networks to find stable accommodation, leaving them exposed to unsafe living conditions. This includes over 43,000 children younger than nine, highlighting the critical need for targeted intervention and family support services.

Understanding the unique challenges faced by these at-risk groups is crucial to addressing the root causes of homelessness and creating impactful solutions.

Find out more about youth homelessness.

Find affordable and community housing with Home In Place

Anyone can experience homelessness for a variety of reasons, from family violence and mental health issues to soaring rental rates and sudden life events.

At Home In Place, we go beyond providing a roof; we aim to restore dignity and stability. Our friendly team helps people find secure housing, feel a sense of belonging, and connect to support services that tackle the root causes of homelessness. Together, we can break its cycle.

Whether you need community housing, affordable housing, or urgent temporary accommodation, we’re here to help across NSW, Victoria, and Queensland.

Contact us for guidance and support with housing in your area today.