It's the "hidden endemic" impacting hundreds of thousands of families across Australia during the cost of living crisis, making Christmas a time of struggle rather than celebration.
Recent data shows 640,000 Australian households don't have their housing needs met, meaning they were experiencing homelessness or spending over 30 per cent of their income on rent.
Half of these households are Aussie families.
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"Poverty among working people feels familiar from the US but is an unfortunate worrying new reality for Australia when historically working people have been able to afford housing," Homelessness Australia CEO Kate Colvin said.
But as the cost of living crisis worsens, inflation rises and energy bills spike more Australians are facing financial and housing difficulties.
New Australian Institute of Health and Welfare figures reveal there has been a 9 per cent increase – nearly 10,000 more Australians – are suffering severe enough financial and housing issues to seek homeless support.
The state which saw the biggest increase in the past year was Tasmania, with 18 per cent more people seeking homeless services.
"People are sleeping in tents. More and more we're seeing working families sleeping in tents," Colvin said.
Massive rent increases force families onto the street
Colvin said the rise in homelessness comes as rent becomes unaffordable in many states, particularly in Tasmania.
"Rent has gone up 17.5 per cent in the past 12 months, nationally. That's driving what we're seeing with more people going to homeless services," she said.
"Tasmania has had really phenomenal increase in rent. People are really struggling with rental increases and many can't keep up anymore."
Colvin said when people seek homelessness support it is difficult to rehouse due to the same reason they have lost their homes – there isn't enough rental supply at an affordable price and there are record low vacancy rents.
"People end up where they're trapped in homelessness," she said.
It is a similar story across Australia with Western Australia recording a 15.4 per cent increase, South Australia a 12.9 per cent jump and New South Wales a 10 per cent rise.
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| Financial difficulties, housing affordability and housing crisis |
2020 – 2021 |
2021 – 2022 |
Percentage increase |
| TAS |
2041 |
2427 |
18.90% |
| WA |
5,599 |
6462 |
15.40% |
| SA |
8052 |
9089 |
12.90% |
| NSW |
25,068 |
27,675 |
10.40% |
| QLD |
17,365 |
18,839 |
8.50% |
| VIC |
31,661 |
33,934 |
7.20% |
| Australia |
91,562 |
99,970 |
9.20% |
It comes as Australians will celebrate Christmas this weekend but Colvin said it will be a bleak festive period for the hundreds of thousands of people and families unable to celebrate.
"The data is showing more and more people are spending every available cent on essentials and there's no room to move for expenses of Christmas," Colvin said.
"A lot of people will be missing out this year.
"That's the group of people who are in housing and paying more than they can afford on rent and the group who are facing a Christmas in a tent."
'Our New Year's resolution should be to get serious about housing'
But what can be done to solve the worsening housing crisis?
The federal government pledged $10 billion in the recent budget to deliver 30,000 social and affordable homes over five years.
"Every Australian deserves the security of a roof over their head," Treasurer Jim Chalmers said.
However, Colvin said this isn't enough when 25,000 social housing properties are needed every year.
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More immediately, Colvin called for the Commonwealth's rental assistance payment to be increased.
For a couple with one or two children, the maximum payment is currently $178 a fortnight, but it depends how much the family pays in rent.
"That would help with the immediate cost of living issues they're facing, particularly rent costs," she said.
Colvin said the federal government's initiatives to expand social and affordable housing are welcome but more needs to be done.
"As a society, our New Year's resolution should be to get serious about housing stress and homelessness," she said.
