Structural Drivers and Individual Risk Factors of Homelessness

We can separate causes of homelessness into two categories: structural drivers and individual risk factors. Structural drivers are factors that affect society as a whole, which can put people at risk of homelessness who otherwise would not be. Individual risk factors put specific groups of people at higher risk of homelessness.

Understanding this distinction is crucial—it reveals that homelessness is not simply a result of personal failings, but rather a systemic issue that affects vulnerable people when broader societal structures fail them.

Structural Drivers

Often, just a few unfortunate events can lead to someone becoming homeless. These events are out of their control, but can lead to a spiralling situation, and are often influenced by structural factors that affect society as a whole:

Housing Affordability Crisis

Australia faces a severe shortage of affordable housing. Rental prices continue to rise faster than wages, making it increasingly difficult for low-to-moderate income households to secure stable accommodation. The private rental market is largely inaccessible to those on government benefits or minimum wage.

Inadequate Social Housing Supply

There is simply not enough public and community housing available to meet demand. Waitlists are years long, and crisis accommodation is chronically under-resourced. When someone needs housing support, there often isn't availability.

Income Inadequacy

Government benefits and minimum wages have not kept pace with the cost of living, particularly housing costs. People working full-time on minimum wage or receiving income support often cannot afford market rent, let alone other essential expenses.

Labour Market Barriers

Unemployment, underemployment, and increasingly precarious work arrangements make it difficult for people to maintain stable housing. Casual and gig economy work doesn't provide the income security needed for rental applications or ongoing housing costs.

Systemic Inequality

Indigenous Australians, people from culturally and linguistically diverse backgrounds, LGBTIQA+ individuals, and people with disabilities face additional barriers in accessing housing and support services due to discrimination and systemic disadvantage.

Individual Risk Factors

Whilst the causes and circumstances that lead to homelessness are varied and diverse, in addition to structural drivers, particular individuals are more at risk of homelessness. Some individuals may face multiple risks, and the combination of several of these may indeed lead to homelessness:

Family Violence and Abuse

Domestic and family violence is one of the leading causes of homelessness in Australia, particularly for women and children. Escaping violence often means leaving home suddenly, without time to secure alternative accommodation.

Mental Health Challenges

People experiencing mental health conditions may find it difficult to maintain employment, manage finances, or sustain tenancies. Mental health challenges can also be both a cause and consequence of homelessness.

Substance Abuse

Similarly, substance abuse can lead to housing loss, but is also often a response to the trauma and stress of homelessness itself, creating a difficult cycle to break.

Exiting Institutions

People leaving out-of-home care, prison, hospital, or other institutional settings are at heightened risk if they don't have stable accommodation to transition to. Young people ageing out of the care system are particularly vulnerable.

Physical Health Problems

Chronic illness, disability, or sudden health crises can lead to job loss, medical debt, and inability to maintain housing. People with disabilities may also struggle to find accessible and affordable accommodation.

Financial Crisis

Unexpected expenses, job loss, relationship breakdown, or overwhelming debt can quickly spiral into rent arrears and eviction, particularly for people living paycheck to paycheck.

Lack of Social Support

People without family or community networks to turn to in times of crisis have fewer options when facing potential homelessness. Social isolation makes people more vulnerable to housing instability.

Protective Factors

At the same time, there are also protective factors that help people avoid homelessness or exit earlier:

Access to financial resources
Psychological resilience and mental wellbeing
Physical and mental health support
Strong relational and community support networks
Education and employment opportunities
Access to legal and advocacy support

Understanding both risk and protective factors helps us recognise where intervention and support can make the most difference.

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Last Updated: January 2026