Homelessness is now a significant issue for two-thirds of Australian councils, which increasingly play a key role on the frontline – but without the authority, funding or housing supply needed to make lasting change.
Homelessness is no longer confined to Australia's inner cities, with new UNSW research revealing the crisis has spread across suburban, regional and coastal communities, leaving local councils to respond without the tools to do so effectively.
Published in the Australian Journal of Social Issues, the national study "How are Australian Local Governments responding to the housing crisis" found that two-thirds (67%) of councils now consider homelessness a significant or acute issue in their local areas, up sharply from about 10% in the 2010s.
Lead researcher Dr Andrew Clarke, from the UNSW Faculty of Arts, Design & Architecture's School of Social Sciences and City Futures Research Centre, says the findings highlight a profound shift in the geography of homelessness.
"Homelessness is no longer an issue faced by a handful of inner-city councils, it's become a widespread challenge across Australia," he says.
"The post-pandemic housing crisis has pushed homelessness into communities that haven't historically dealt with it."
The mixed-methods study combines a national council survey with in-depth interviews across three case study areas, capturing both the scale of homelessness locally and how councils are responding.
Councils stepping in – without a mandate
Despite not being formally responsible for homelessness policy or service delivery, councils are increasingly expected to act.
"Local governments aren't funded or mandated to deliver homelessness services, but when people see someone in distress, they often call their council," he says.
In fact, the study found 77% of councils identified complaints or concerns from residents, businesses and community groups as the primary trigger for action.
"As homelessness has become more visible in public spaces, councils – responsible for parks, libraries and streets – are effectively on the frontline of the crisis."
A growing role, with limited tools
The research identifies three key roles councils are playing: monitoring homelessness and connecting people to services, coordinating fragmented local responses, and facilitating housing and accommodation support, including making council property available to service providers.
"Councils are often the 'eyes and ears' on the ground, encountering people more frequently than services themselves, meaning they can help connect them to support," Dr Clarke says.
"They're also trusted brokers, because they're not competing for funding, they can bring services together in a way others can't," he says.
Councils also work with grassroots charities and volunteers to try and avoid duplication of support on certain days or locations to help them be more effective with the resources the community has access to.
"These roles reflect where councils can make a difference, working within their constraints to improve local responses," Dr Clarke says.
The study also found that many councils are moving away from enforcement-based approaches, such as moving people on, towards more supportive and compassionate responses.
"There's been a real cultural shift, councils want to prioritise care and coordination rather than compliance," Dr Clarke says.
Councils know the services available and can triage people experiencing homelessness towards support in the community.
But this progress can be fragile. Without secure housing pathways, even well-coordinated response can stall.
"You can have well-coordinated services and strong local responses, but without housing, people remain homeless. As a result, councils often face significant pressure (from local residents and businesses) to revert back to unproductive enforcement responses, as recent high-profile cases in Queensland illustrate all too clearly," says Dr Clarke.
A system under strain
Councils face significant constraints, including limited budgets, staffing challenges and a lack of legal powers. Close to 80% of those surveyed reported financial pressures affecting their ability to respond.
However, the most critical barrier is structural: a severe shortage of social and affordable housing.
"Local responses can only go so far when there isn't enough housing available," Dr Clarke says. "You can have the best services on the ground, but if there's nowhere for people to go, the system hits a wall."
Without stable housing pathways, councils and service providers struggle to achieve long-term outcomes, leaving people stuck in homelessness and councils under mounting pressure from their communities.
"In some cases, councils are forced back into enforcement approaches, not because they want to, but because they can't get housing outcomes," he says.
International research has shown that reverting to enforcement measures pushes people further into disadvantage.
"Moving people on doesn't solve homelessness, it just shifts it," Dr Clarke says.
"People often lose the limited belongings they have, their medication, identification documents along with their ties to local support services when they are moved on," he says.
"It can actually make things worse by disrupting support, harming health and entrenching people's marginalisation."
Call for a coordinated national response
The study authors conclude that while local governments are playing an increasingly important role, they cannot solve the crisis alone.
"Local governments can and do make a positive contribution, but their impact depends on broader systemic change," Dr Clarke says.
That includes greater investment in social housing, more funding for local responses, and stronger coordination across all levels of government.
"None of the good work happening on the ground will be effective unless we address the housing shortage," he says.
"The takeaway is clear: councils are part of the solution, but they can't do it without the resources and housing supply needed to back them up."
The research upon which this analysis is based was conducted as part of the Australian Homelessness Monitor 2024, which was carried out in partnership with Homelessness Australia and funded by the Lord Mayor's Charitable Foundation and the Council of Capital City Lord Mayors.
