Poverty. On a global scale, poverty is one of the most significant root causes of homelessness. Stagnant wages, unemployment, and high housing and healthcare costs all play into poverty. Being unable to afford essentials like housing, food, education, and more greatly increases a person's or family's risk.
People become homeless for lots of different reasons. There are social causes of homelessness, such as a lack of affordable housing, poverty and unemployment; and life events which push people into homelessness. People are forced into homelessness when they leave prison, care or the army with no home to go to.
Homelessness has a number of causes which can be structural or individual in nature. Structural factors include: poverty levels; • unemployment rates; • lack of affordable housing; and • large-scale social policiesiv.
For thousands of Australians, the risk of losing their home is only one pay slip away. The high cost of rental housing combined with the lack of affordable housing options, particularly for low income earners, can force many families and individuals out of their homes with no place to live.
Minister for Families and Communities, and Minister for Disability Services (appointed December 2021). The Department provides support for people experiencing or who have experienced domestic and family violence; people experiencing or at risk of homelessness and people in need of safe and affordable housing.
However, family and domestic violence is the most common main reason people seek assistance from Specialist Homelessness Services (SHS) (29 per cent or more than 79,000 people in 2020-21).
What are the two key reasons why people become homeless? Lack of affordable housing and poverty are the two key reasons why people become homeless.
Homelessness and poverty are inextricably linked. When individuals or families are unable to generate enough income to pay for housing, food, childcare, health care, and education, necessities with a high cost burden sometimes fall to the wayside.
Australians known to be at particular risk of homelessness include those who have experienced family and domestic violence, young people, children on care and protection orders, Indigenous Australians, people leaving health or social care arrangements, and Australians aged 55 or older.
There are no internationally agreed upon definitions of homelessness, making it difficult to compare levels of homelessness across countries. A majority of people experiencing homelessness long-term in Australia are found in the large cities of Sydney, Melbourne, Brisbane and Perth.
Young people made up around 21% of the homeless population. Among homeless young people aged 15–24 (around 24,200 young people): the most common form of homelessness was living in severely crowded dwellings (58% or 14,100 young people)
At the same time, the homelessness rate has continued to outpace Australia's rate of population growth. The average monthly number of people using homelessness services increased by 8% to 91,300 over the past four years – double the growth rate of new households.
Homelessness can be solved through providing more safe and affordable housing, ensuring people's incomes allow them to afford housing and other essentials, and providing support where needed for people to get into and sustain a home.
Australian policy interest in homelessness started in the early 1970s with the passage of the Homeless Persons Assistance Act (1974).
Key factors include; lack of adequate income, access to affordable housing and health supports and experiences of discrimination, and shifts in the economy that can leave people unable to pay their bills.
The causes of homelessness vary and include substance abuse, violence in the home, and loss of income. Homelessness is a problem for individuals and communities alike. Some of the effects of homelessness can include poor health conditions, low self-esteem, and strain on the community.