New Data Shows Over 65,000 Turning to Homelessness Services in NSW

Housing crises, financial difficulties, and domestic violence were the main reasons reported by those seeking homelessness support.

A homeless girl sleeps on the ground by a sign asking for food and clothing in Sydney, Australia, on Jan. 18, 2021. Jenny Evans/Getty Images

The housing crisis in New South Wales remains dire, with new figures showing 67,900 people sought help from homelessness services over the past year, highlighting an urgent need for action.

The Australian Institute of Health and Welfare reported that this number has barely changed from the 68,400 recorded the year before.

Housing security, financial hardship, and domestic violence were the leading causes, cited by 41 percent, 39 percent, and 36 percent of those seeking help, respectively.

More than half—53 percent— of those reaching out for assistance were already homeless, up from 50 percent the previous year. Of these, 8 percent are sleeping rough.

Indigenous Australians remain disproportionately affected, representing 33 percent of all clients in NSW, compared to the national average of 29 percent.

Homelessness NSW CEO Dominique Rowe described this overrepresentation as a “national shame,” and called for greater collaboration with Aboriginal-led organisations to address this inequity.

“This is a wake-up call,” said Rowe, noting that the demand for services far exceeds supply.

Currently, 76 percent of people seeking long-term housing support are unable to access it, and nearly half of those needing emergency accommodation re turned away.

“Demand is so great that more people are turned away than helped,” Rowe said.

Calls for Immediate Action

Homelessness NSW is urging the government to take decisive action to address the growing crisis.

The organisation recommends a 30 percent increase in Specialist Homelessness Service programme funding, equating to approximately $96 million annually, to meet the soaring demand.

Furthermore, it calls for a $2 billion annual investment over the next decade to construct 10,000 additional social housing properties each year, with the long-term goal of ensuring social housing constitutes 10 percent of all housing by 2050.

Rowe praised the government’s recent allocation of $5.1 billion for social housing in the 2024–25 budget, including 8,400 new social homes. However, she emphasised that sustained investment is crucial.

Shadow Minister Criticises Labor

Shadow Minister for Homelessness Natasha Maclaren-Jones has criticised the Minns Government over the 2024 street count.

“The housing and homelessness crisis under the Minns Government continues to worsen, leaving our most vulnerable at greater risk,” said Maclaren-Jones.

She warned that escalating housing and economic pressures could push more individuals into homelessness for the first time.

Maclaren-Jones highlighted the strain on homelessness services and called for immediate additional funding and expanded reporting to capture all forms of homelessness, including couch surfing and other precarious living situations.

Meanwhile, the NSW government claims to have a $5.1 billion social housing scheme to address the state’s growing housing crisis.

As part of the plan, 8,400 homes will be constructed, with half designated for women and children escaping domestic violence, marking the largest public housing investment in NSW history.

In addition to housing, the budget focuses on alleviating GP shortages, improving Western Sydney transport, and tackling rental property affordability.

Premier Chris Minns and Treasurer Daniel Mookhey emphasised housing affordability as NSW’s most pressing issue, with Mookhey stating, “Helping families is our most important mission during NSW’s worst cost-of-living crisis in a generation.”

National Trends Paint a Grim Picture

Another report by the Australian Homelessness Monitor (2024), released on Dec. 9, revealed a 22 percent rise in people sleeping rough nationally over three years.

NSW’s regional areas have been particularly hard-hit, with a 51 percent surge since 2020.

Professor Hal Pawson from the University of New South Wales (UNSW) attributed this to skyrocketing rental costs—which have risen 51 percent since the pandemic—and a chronic shortage of social housing.

“The number of people citing rental affordability stress as a primary reason for seeking help rose by 36 percent,” said Professor Pawson.

The report also highlighted that an increasing number of employed individuals are now seeking homelessness services.

Federal Government’s Housing Agenda

To tackle the crisis, the government claims to have introduced several significant reforms.

Central to these efforts is the $10 billion Housing Australia Future Fund, which will deliver 30,000 new social and affordable homes over five years.

Additionally, the $2 billion Social Housing Accelerator will construct or refurbish 4,000 homes for those on social housing waiting lists.

Complementing these initiatives is the National Housing Accord, which aims to facilitate the construction of 1.2 million new homes over five years starting in July 2024. This plan includes a $350 million in federal funding, matched by state contributions.

Other measures include tax incentives for build-to-rent developments, a 10 percent boost in Commonwealth Rent Assistance, and expanded eligibility for the Home Guarantee Scheme.

Housing Australia’s liability cap has also been raised by $2 billion, enabling more loans for community housing providers.