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1.2 Why do people experience homelessness?

Homelessness doesn’t happen in a vacuum—it can happen to anyone, from any walk of life and is driven by a range of different factors. From rising housing costs and financial strain to domestic violence and systemic barriers in accessing support, the paths into homelessness are complex and deeply intertwined.

But just as important as understanding the causes is recognising the ripple effect homelessness creates. Once someone is without a stable home, they often face further challenges: worsening mental and physical health, disrupted education, and a heightened risk of justice system involvement. These outcomes can trap individuals in a cycle that is difficult to escape.

Homelessness is often associated with risks at four key points in time:

  • Entry into homelessness (e.g. rent arrears, impending eviction, family violence, exiting an institution)

  • Experience of homelessness itself

  • Barriers to exit from homelessness

  • Repeat episodes of homelessness

Understanding that risks often occur at these key points is vital in understanding why the risks are so significant.

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 a range of structural factors that affect society as a whole. Here are a few major factors:

  • 🏠 Housing supply and the general affordability of housing - The rising cost of housing means that individuals who were previously in stable housing may find it increasingly difficult to pay their rent. Additionally, the increasing shortage of affordable housing makes it difficult to find a safe place to stay, which in turn may drive up prices.

  • 💼 Unemployment/underemployment - It is well-established that employment and income is generally protective against homelessness. On the flip side, however, unemployment or underemployment hinders individuals’ abilities to afford safe and adequate housing. This may also have to do with the labour market, with research showing a correlation between weak labour markets and homelessness.

  • 🆘 Uneven distribution of homelessness services - As you will learn about later in this course, there are a range of homelessness services available to those experiencing and at risk of homelessness. However, in many areas, these services may be inaccessible or inadequate, which may contribute both to entry to or worsening of (e.g. from secondary to primary) homelessness.

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 even face multiple risks, and the combination of several of these may indeed lead to homelessness. Here are some of the biggest risks, a few of which you may have seen in the video you watched earlier:

  • ❗ Domestic and family violence - This mainly affects women, children and young people, but those experiencing domestic and family violence are unsafe in their homes and may have no alternative other than to accept inadequate or insecure accommodation to escape violence. This in turn negatively affects their financial situation and social connections. Children are particularly at risk, with around 67% of those at risk of or experiencing homelessness having experienced some form of childhood abuse or neglect.

  • 🪦 Unexpected life shocks - A relationship breakdown, a death or sickness in the family are examples of unexpected events that may lead to someone losing the ability to maintain secure and adequate housing

  • ⚕️ Health issues - Mental ill-health is the most common risk factor as the social and financial difficulties associated with mental illness may lead to homelessness. Disability, traumatic stress, problematic drug or alcohol use are other health-related factors that may increase one’s risk. In particular, around 9% of people presenting at homelessness services have problematic drug and/or alcohol use. This, however, may also be a result, rather than a risk factor of homelessness.

  • 🌏 Cultural risk factors - As you learnt in an earlier section, Indigenous Australians are disproportionately affected by homelessness. This is because they are often at an increased risk to many other factors, such as domestic and family violence, unemployment, mental illness, trauma and poverty. On top of this, Indigenous and migrant groups may face problems finding suitable housing due to discrimination in the private rental market.

  • 👪 Previous/intergenerational homelessness - Individuals who have had previous experience of homelessness, including across generations, are likely to experience persistent or repeated homelessness.

  • 👮 Exiting institutions - When individuals transition between institutions - such as incarceration discharge, leaving hospital care or leaving the military - they find themselves in a gap in the system and are at increased risk of becoming homeless.

At the same time, there are also protective factors that protect people risks. Some people are better able to avoid homelessness or exit earlier because of access to financial resources, psychological resources and physical and mental health, as well as relational support.

A further cycle of hardship

Experiencing homelessness is often the beginning of a further cycle of hardship, and individuals are at increased risk of repeated homelessness, as well as other struggles that, in turn, increase the likelihood of homelessness. Here are just a few:

  • 🧠 Mental Health: People who have lived experience of homelessness are almost 2 times more likely to report experience of a mental health condition

  • ✏️ Education: Children, who make up almost a quarter of those experiencing homelessness, have decreased engagement in the classroom, leading to worse academic achievement

  • 👮 Justice: There is an increased risk of involvement with the criminal justice system and incarceration.

  • 🩺 General Health & Wellbeing: Those who have experienced homelessness have higher rates of several chronic conditions and mortality.

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