Victorians at risk of homelessness surges to almost one million people: report

A landmark study has found the number of Victorians at risk of homelessness has surged 67 per cent to almost 1 million people, the biggest increase anywhere in Australia.

A new Impact Economics report, Call Unanswered, has revealed homelessness services are closing their doors to people desperately seeking help because of a lack of resources.

Between 2016 and 2022, Victoria saw the most significant change in the number of people at risk of homelessness, rising from 591,000 to 987,000 – a 67 per cent increase.

The research also surveyed 23 specialist homelessness services nationally including 10 in Victoria over two weeks in September 2024.

Across the state services are stretched to the point that almost one in three (29%) services were forced to shut their doors.

In Victoria, the number of households experiencing rental stress has jumped by 43,100 since the 2021 Census, a 23.1 per cent statewide increase, with Melbourne experiencing a 27.2 per cent rise.

Council to Homeless Persons CEO Deborah Di Natale said:

“Almost one million Victorians are now at risk of homelessness – a shocking rise that has unleashed a tidal wave on services.

“One in three homelessness services in Victoria are being forced by insufficient funding to close their front doors to people desperately seeking help.

“This will mean terrible consequences for women with children trying to escape domestic violence.

“Under-resourced services simply can’t go on like this, with people falling through ever-widening cracks as the worst rental crisis in living memory worsens.

“We have heard from services directly that it is breaking their hearts to turn people away. Everybody deserves a home.”

“We need funding for homelessness services to be increased, including increased investment in prevention, and expansion of Housing First programs, so staff can respond to everyone seeking help.”

Homelessness Australia CEO Kate Colvin said:

“Homelessness services simply don’t have the staff to stretch to everyone needing help, and have to go on ‘by-pass’, and triage support to people each day. 

“This means opportunities to help people avoid homelessness are missed; and people go longer without support or miss out entirely, making the path out of homelessness longer, more brutal and less likely to succeed.”

Dr Angela Jackson, report author and principal, Impact Economics:

“Cost of living increases always hurt those on lower incomes the most – and these figures highlight the extent of hardship.

“Most of us would expect that if we needed help with finding somewhere to sleep tonight or to avoid eviction, we would receive that help – but that is not the reality for many with homelessness services overly stretched.

“We need to address structural issues but also increase support today to deal with the current crisis.”