The housing crisis in Victoria has worsened significantly over the past year, with negative trends across all key measures in the 2025 Housing Insecurity Index.
Rapidly increasing rents, a fast-growing waitlist for social housing and thousands of people being forced into homelessness because of family violence and housing stress are all contributing factors.
However, the authors of the report—the Council to Homeless Persons (CHP)—lay the blame at the feet of the state government, which they say needs to build more homes.
Median rents across the state rose by 3.9 percent in the past year, with people in regional areas being especially hard-hit by a 6 percent increase.
More than 66,000 people are now on the social housing waitlist, up 7.4 percent in a year.
Over 13,000 Victorians every month seek help due to family violence, while more than 10,000 turn to homelessness services because of housing stress.
Victoria’s proportion of social housing is just 3 percent, making it the lowest in the country.
State investment in housing and homelessness services is $399.80 per person, below the national average, despite Victoria accounting for one-third of the demand.
The Council wants the government to set a social housing target and deliver at least 4,000 new homes per year, a figure, it points out, that was recommended by Infrastructure Victoria.
The report notes that 7,990 new social housing homes a year over the next ten years is needed to bring Victoria up to the national average.
It also wants to see increased government investment in homelessness prevention, including Housing First models and income support, along with boosts to funding for crisis accommodation and homelessness services.
‘Intensifying’ Crisis: Homeless Council
CHP Chief Executive Officer Deborah Di Natale said the figures paint “a devastating picture of rising demand and insufficient government action.”“Every day in Victoria, tens of thousands of people are forced into impossible choices between paying rent, escaping violence, or facing homelessness. The Housing Insecurity Index shows the crisis is not easing. It’s intensifying,” she said.
“People are sleeping in cars with their kids, couch surfing, or living in public spaces. They are doing everything they can to hold their lives together while waiting endlessly for secure housing.
“This report makes it crystal clear that the government must do more.”
The Index has also revealed the growing impact of family violence, with more than 43 percent of those who turned to homelessness services in June doing so to escape violence; a figure that has remained above 13,000 every month since August 2023.
Di Natale said urgent action would not only reduce homelessness but also save the government money.
“Investing in social housing and homelessness services is common sense,” she said. “Right now, Victoria spends more per person on police services and court hearings than on keeping people safely housed.
“Every dollar invested in social housing reduces costs to the justice and health systems, while sparing thousands of Victorians the often lifelong trauma of homelessness.”
The Epoch Times approached both the opposition housing spokesperson, Richard Riordan, and Victorian Housing Minister Harriet Shing for comment and did not receive responses by publication time.
