New Australian Institute of Health and Welfare (AIHW) data reveals a system under extreme strain, with a surge in homeless people seeking help which isn't available and a marked increase in rough sleepers.
Every day Specialist Homelessness Services (SHS) receive an average of 353 requests for help that they can't meet; almost 4 in 5 from women and children, many fleeing family violence. And daily unassisted requests have surged 18 per cent in a single year.
Homelessness Australia CEO Kate Colvin said the figures show people are reaching services too late, revealing a system at breaking point.
The number of people coming to Specialist Homelessness Services (SHS) who are already homeless has risen by 6%.
"Too many people aren't getting help until they've already lost their home and are sleeping in cars, tents or on the street.
"We know this because the number of people who are sleeping rough when they reach out for support surged by more than 12 per cent. A massive 56,063 people - one in five people coming to homelessness services - slept rough at some point in the month prior to getting help.
"This is the clearest warning yet that demand is simply too high, and we need to scale up homelessness services, particularly early-intervention for people at risk of homelessness.
"The right support at the right time can mean someone at risk of homelessness never loses their home and scarce emergency accommodation remains available.
Mission Australia CEO Sharon Callister said far too many people are being pushed into homelessness before they can access support.
"When people do seek help, there simply aren't enough safe, secure homes for everyone who needs one.
To stop homelessness before it starts and ultimately end it, one in ten new homes must be classed as social or affordable housing, with ongoing support available.
Early intervention keeps people housed, supports their wellbeing, and eases pressure on overstretched services," she said.
Alarmingly, children now make up more than one quarter (27%) of all clients and together with their mothers, account for almost three quarters (73%) of people seeking support.
First Nations homelessness has also increased, with Indigenous clients growing 6% to more than 82,891 and comprising more than a quarter (29%) of all people seeking help.
Homelessness Australia is calling for a dedicated Homelessness Prevention Fund to stop people losing their homes and ease the burden on crisis organisations stretched beyond limits.
"Our crisis system is indispensable, but it's carrying too much of the load because we don't have enough early intervention in place," Ms Colvin said.
"A Homelessness Prevention Fund would allow organisations to step in early with tailored financial assistance and support pathways for clients before they turn up homeless.
"More than one in ten people who sought help were employed which tells us cost-of-living and rental pressures continue to push working Australians into homelessness.
"The number of young people presenting alone and domestic and family violence-related demand also rose by 5 and 6.4 per cent respectively.
"Whether it's young people, victim-survivors, or single-income families in crisis, the data shows just how urgent the need is for a prevention fund to keep people housed and safe.
"Without one, the number of people turning up already homeless will keep rising every single year.
"The choice for the government is simple: invest in prevention now, or pay the human and financial cost of a growing homelessness disaster."
Key statistics
People already homeless when they sought help increased 6%
People at risk of homelessness increased 1%
288,970 people sought help in 2024-25 which is up 3.2% from 280,078
73% of all clients were women or children (211,804)
27% (78,805) were children
29% of all clients were Indigenous
Indigenous clients increased 6% from 78,292 to 82,891
- 40,537 children and young people aged 12-24 presented alone, without a parent or guardian
More than 1 in 10 people (11.5%) seeking help had a waged income
40% of all people seeking support had experienced DFV
DFV-related demand increased 6.4%, from 109,487 to 116,538
People sleeping rough at the point of seeking help increased 12%, from 31,221 to 34,833
One in five (20.3% or 56,063) clients reported sleeping rough in the month before seeking support
Almost 1 in 3 (31%) of people who needed short-term or emergency accommodation were not provided with accommodation.