Homelessness is the absence of secure and stable housing that meets basic comfort and privacy needs. Tackling such a complex issue demands an understanding of its origins in each case.
But what causes homelessness, exactly?
This difficult experience is driven by a tangle of personal, systemic and structural 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 can help a person experiencing homelessness break its cycle.
Key takeaways
- Homelessness rarely stems from one single cause. It’s usually an interplay of individual factors and structural drivers that compound and reinforce each other
- Domestic and family violence is the most commonly cited reason for homelessness in Australia, but it’s not the sole driver.
- Mental health conditions, high rental rates and low incomes, and gaps in Australia’s support systems all combine to push people into homelessness.
- A lack of affordable housing options as a reason for seeking help has nearly doubled in a decade.
- Aboriginal and Torres Strait Islander people, women over 55, and young people face disproportionately higher risks of experiencing homelessness.
- Without stronger support during life transitions, such as leaving hospital, prison, or out-of-home care, many people cycle back into homelessness.
- Home in Place helps people find secure housing and connects them to the services that address these root causes.
What causes homelessness in Australia?
The main reasons for homelessness in Australia include a lack of affordable housing, family violence, financial hardship, and mental health issues.
However, one of the biggest misconceptions is that homelessness has a single cause.
In reality, societal factors and individual circumstances work together to push people into homelessness, particularly vulnerable groups like women, children, and those with mental health challenges.
Allison Brown, Program Manager, Housing Pathways at Home in Place, has witnessed this interplay first-hand: Allison Brown, Program Manager, Housing Pathways at Home in Place, has witnessed this interplay first-hand: ‘Over the years, I’ve met people who have become homeless after leaving domestic violence, losing their job, experiencing illness, a relationship breakdown, or simply because the rent kept increasing until it became impossible to keep up. Sometimes it’s one significant event, but more often it’s a series of setbacks with no safety net left.’
Keep reading to learn more about what causes homelessness in Australia.
Family and domestic violence
Domestic and family violence is the leading cause of homelessness in Australia. It involves any violent, controlling, or threatening behaviour that instils fear in a family member, forcing many victims 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, people who have escaped abusive relationships are the largest group seeking help. In 2024–25, people who had experienced family and domestic violence made up over 40% of all Specialist Homelessness Services clients.
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 greater risk of falling into patterns of substance abuse and financial hardship, making it extremely difficult to find a stable home.
High rental rates
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.
‘In the past, if someone lost a tenancy they might have been able to find another home fairly quickly. Today, there may simply be nothing available within their budget,’ says Allison. ‘We’re seeing increasing numbers of private renters who simply can’t find another affordable property if their lease ends.’
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.
According to Allison, ‘the cost of living and the rental crisis have changed the profile of people seeking help. We’re seeing more people who have never needed support before. People who may have managed five years ago are now finding that even working full time isn’t enough to secure or keep a home. They’re working, they’re paying their bills, but one unexpected expense or rent increase is enough to tip everything over.’
Data supports the claim that many Australians have very little financial buffer, with around one in five households being unable to raise $2,000 within a week of an unexpected expense.
And this is only part of the problem. With housing demand far outstripping supply, landlords tend to prioritise applicants with stronger financial profiles, making it even harder for vulnerable groups to find a secure place to call home.
Allison states that ‘families are staying in overcrowded homes, people are remaining in unsafe situations because they have nowhere else to go, and others are facing homelessness for the first time.’
Commonwealth Rent Assistance (CRA) provides eligible renters with additional financial support to help meet the cost of rent.
However, in many parts of Australia, the payment has not kept pace with rising rental costs, leaving many households still experiencing rental stress.
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.
This pressure is showing up nationally, too. The share of Specialist Homelessness Services clients citing housing affordability stress as their main reason for seeking help nearly doubled in a decade, from 4.9% (12,500 clients) in 2014–15 to 9.1% (26,200 clients) in 2024–25.
Mental illness
In 2024–25, Specialist Homelessness Services assisted around 88,800 clients with a current mental health issue, close to a third (31%) of all clients, and the second largest client group overall. More than half of these clients (45,900) were already experiencing homelessness by the time they first sought help.
Moreover, almost 2 in 5 Australians aged 16–85 who experience homelessness report having had a mental illness within the past year. This is nearly double the rate in the general population (21%).
This stark difference highlights how deeply intertwined mental health struggles and housing instability can be, and why people with complex needs often require more than a single service to get back on their feet.
Mental health conditions that amplify distress and hinder daily decision-making can disrupt job stability and employment opportunities, strain personal relationships, lead to social isolation and fuel financial setbacks. All of these obstacles make it more challenging to find a home and stay housed.
For example, in 2024–25, around 9 in 10 of Specialist Homelessness Services clients with mental health conditions were not in paid work, and more than half were unemployed and actively looking for a job.
From there, the instability of homelessness worsens mental health conditions. Without proper treatment and support services, many are left stuck in a relentless struggle between finding stability and managing their mental health.
This group is also growing faster than any other: the number of clients with a current mental health issue has increased by an average of 5.4% a year since 2011–12, nearly four times the growth rate across all Specialist Homelessness Services clients.
Structural and systemic shortfalls
Homelessness is 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.
‘The people working across housing, health and community services are incredibly committed, but they’re responding to a level of need that has grown significantly in recent years,’ Allison explains.
A prime example is Australia’s current shortfall of 215,000 affordable housing dwellings.
Additionally, with over 400,000 households who are eligible for social housing unable to access it, many have to rely on a private rental market they simply can’t afford. Meanwhile, social security payments often aren’t enough to cover rent payments.
Beyond accommodation, our support systems for those facing financial hardship, job loss, or transitioning from prisons, foster care, hospitals and mental health facilities often fall short.
This is a real issue. ‘Housing is the foundation, but people often need much more than housing alone,’ says Allison. ‘Access to healthcare, financial counselling, employment support, mental health services, legal assistance and strong community connections all play an important role.’
After all, no single organisation can end homelessness on its own. It takes collaboration across government, housing providers, specialist services and local communities.
‘We need continued investment in prevention, early intervention and integrated services that work together. The more connected our services are, the better outcomes we can achieve for people experiencing hardship.’
In the absence of these efforts, significant gaps leave people without the resources they need to rebuild stability.
Additionally, while policies are crucial, it’s important to appreciate that everyone’s situation is different. What works on paper doesn’t always reflect the complexity of someone’s life. That’s why local partnerships matter so much.
When organisations know each other, trust each other and work together, people are far less likely to fall through the cracks.
Hunter Homeless Connect Day brings that idea to life. At this event, housing providers, health services, government agencies, charities, local councils, volunteers and businesses can all come together with a shared purpose.
In turn, people experiencing homelessness can move easily between services and find the support that’s right for them.
Who is most at risk of experiencing homelessness?
No one is immune to the factors that cause homelessness, regardless of their background or circumstances.
‘Homelessness doesn’t have one face anymore. It affects people from all walks of life,’ Allison highlights. ‘It’s not about who you are. It’s about what happens when life throws multiple challenges at you, and there isn’t an affordable, safe housing option to fall back on.’
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 people
Aboriginal and Torres Strait Islander people make up around 3.2% of Australia’s population but represent a staggering 20% of the homeless population.
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, culturally appropriate and adequate housing options.
This overrepresentation carries through to service use. In 2024–25, Aboriginal and Torres Strait Islander people made up close to a third (29%, or 82,900 clients) of everyone assisted by Specialist Homelessness Services.
Women over 55
One trend that stands out from our Hunter Homeless Connect Day data is the growing number of older people accessing support due to housing stress. At Home in Place, the largest proportion of tenants in recent years has been people aged over 40, with many over 55.
Supporting research suggests that older women are one of the fastest-growing demographics among those facing homelessness, with over 7,300 currently affected.
Lots of these people 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, and for many older women, financial insecurity is both a cause and a consequence of the isolation that often follows these life changes.
These women may couch-surf with friends or live in overcrowded housing, making their struggles less visible but no less severe.
Minors
Young people are often displaced alongside parents or other family members, particularly those escaping domestic violence. In 2024–25, close to 3 in 10 Specialist Homelessness Services clients (27%, or 78,800) were under 18.
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 youth homelessness and creating impactful solutions.
Find out more about youth homelessness.
The early warning signs of housing stress
Housing stress usually builds long before someone loses their home. It shows up first as financial pressure, then it starts spilling into daily life.
- Signs to watch for include:
- Skipping meals to cover other costs
- Delaying medical appointments
- Falling behind on bills
- Struggling to afford rent after an increase
- Getting notice that a lease won’t be renewed
- Relying on family or friends just to get by
While none of this looks like homelessness yet, it’s often the clearest indicator that someone is heading toward it.
It’s important to keep an eye out for these red flags, as support works best when it starts early. The sooner people reach out, the better their chances of avoiding homelessness altogether.
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.
Now that you understand what causes homelessness, know that help is available.
At Home in Place, we go beyond providing a roof; we aim to restore dignity and stability. Our friendly team focuses on providing services that help people feel a sense of belonging and tackle the root causes of homelessness. Together, we can break its cycle.
Whether you need community housing, affordable housing, urgent temporary accommodation, or transitional housing, we’re here to help across NSW, Victoria, and Queensland.
Contact us for guidance and support with housing in your area today.
