Homelessness isn’t a distant problem—it impacts everyone, even those who have never experienced it firsthand. Communities are built on connections, shared resources, and collective aspirations, and when individuals lack safe, stable housing, the ripple effects are felt far and wide.
But exactly how does homelessness affect the community?
The consequences extend socially, economically, and through public health. It strains medical systems, disrupts social cohesion, harms workforce participation, and affects how public funds are allocated. That’s why addressing homelessness isn’t just about providing shelter—it’s about strengthening the entire community.
At Home In Place, we are calling on the Federal Government to commit just 2% of its budget to housing solutions. By prioritising long-term investment in community housing and affordable housing, we can break the cycle of homelessness and create lasting change.
The Costs of Homelessness to Society
Erodes social cohesion
Communities thrive on connection, but homelessness disrupts those bonds. Seeing people struggle on the streets can create unease and uncertainty, making individuals less likely to engage with or support one another. Misconceptions and stigma surrounding homelessness can further isolate those in need, deepening divisions within society.
Restoring social cohesion requires a commitment to housing as a human right. By ensuring everyone has access to stable accommodation, we foster stronger, more resilient communities where no one is left behind.
Harms psychological wellbeing
Homelessness entails so much more than lacking a roof—it’s about being pushed to the margins of society, unseen and unheard.
The stigma attached to homelessness creates a wall of judgment, making those in need feel isolated and unwelcome. Instead of reaching out for help, many retreat further out of fear of condemnation.
For those who have never faced homelessness, it can be difficult to truly grasp the emotional toll it takes. This disconnect often fuels an “us vs. them” mindset.
As a consequence, if someone loses their home, they may then lose access to basic opportunities like employment, healthcare, and community support, too.
But the impact doesn’t stop there.
A community where homelessness is prevalent carries its own psychological burden. Residents may feel uneasy, uncertain about safety, or helpless in the face of a growing crisis. For frontline workers—social workers, healthcare providers, and volunteers—compassion fatigue can set in, as they bear witness to endless cycles of struggle and systemic failure.
Shifting from judgment to empathy is the first step toward real change. When we replace stigma with support, we strengthen the entire community so no one is left behind.
Places pressure on healthcare systems
Access to basic healthcare is a challenge for those experiencing homelessness, making even minor health issues escalate into serious conditions.
Without stable housing, regular medical care becomes nearly impossible, while exposure to the elements, unsanitary conditions, and inadequate nutrition contribute to a wide range of illnesses.
Consequently, chronic conditions like asthma, epilepsy, dementia, and liver disease are far more prevalent among people facing homelessness.2
Mental health is also deeply affected. Studies show that young people experiencing homelessness are significantly more likely to suffer from anxiety, depression, and mood disorders than their peers.3
Without consistent support, these conditions often go untreated, worsening over time. And because homelessness makes preventive care difficult, many individuals rely on emergency rooms as their primary healthcare option.
This not only leads to higher costs but also puts immense pressure on already stretched healthcare systems. Overcrowded emergency departments, longer wait times, and overwhelmed frontline workers combine to reduce the quality of care for everyone in the community.
A dedicated 2% of the Federal Budget toward housing solutions would alleviate this burden. Stable housing leads to better health outcomes, reducing emergency visits and freeing up resources for the entire community.
Strains the economy
Homelessness is costly. Estimates suggest that providing services to people sleeping rough costs the community over $25,000 per person each year, while youth homelessness generates additional health and criminal justice expenses of $626 million annually in Australia.
Government funding is stretched across emergency shelters, crisis services, healthcare, and policing—resources that could be better allocated to long-term solutions. Additionally, areas with high levels of homelessness often experience reduced tourism, business investment, and declining property values, further impacting local economies.
Addressing homelessness isn’t just a social responsibility—it’s an investment in the long-term stability and prosperity of our communities. By prioritising solutions that offer housing, employment pathways, and support services, we can reduce financial strain.
How the community can help
Addressing homelessness requires a united effort. No single organisation or sector can solve this crisis alone—it takes collaboration between government agencies, non-profits, and local communities.
That’s why Home In Place is leading the charge with our Modern Homelessness Campaign, urging the government to commit to building 1 in 10 new houses, creating safe and sustainable housing solutions. By advocating for change, supporting housing programs, and engaging in community action, we can all play a part in creating a future where no one is left without a home.
A future without homelessness
Homelessness isn’t just an individual challenge—it’s a community-wide concern with widespread social and economic impacts. But with the right policies and investments, we can change this reality.
At Home In Place, we believe safe, stable housing is the foundation for rebuilding lives. By prioritising long-term housing solutions, we can create stronger communities where everyone has the opportunity to thrive.
Join us in calling on the government to commit to building 1 in 10 new houses. Together, we can turn the tide and ensure that everyone has a place to call home.
References
- Reilly, J., Ho, I., & Williamson, A. (2022). A systematic review of the effect of stigma on the health of people experiencing homelessness. Health & Social Care in the Community, 30, 2128–2141. https://doi.org/10.1111/hsc.13884
- Burt, M. R. (2001). What will it take to end homelessness? U.S. Department of Health and Human Services. Retrieved from https://aspe.hhs.gov/sites/default/files/migrated_legacy_files//199441/HomelessHistRB.pdf
- MacKenzie D, Flatau P, Steen A, Thielking M. The cost of youth homelessness in Australia. Research briefing. 2016. http://www.csi.edu.au/media/uploads/CYHA_FINAL_REPORT_18April2016_v0dqGpT.pdf
- Witte E. The case for investing in last resort housing (MSSI Issues Paper No. 10). Melbourne Sustainable Society Institute/The University of Melbourne, 2017. http://sustainable.unimelb.edu.au/case-investing-last-resort-housing (viewed February 2025).
