New research highlights missing link in the housing and homelessness puzzle

  • New study highlights a successful solution to reduce reliance on strained public housing system.
  • Government urged to increase investment in cost-effective alternative as housing crisis and homelessness worsens.

Amidst staggering waits for public housing and skyrocketing rental prices, new research has identified a viable, cost-effective solution that could help ease the driving pressure on homelessness and housing support systems.

With safe, affordable and secure housing out of reach for many Australians, federal and state governments have been urged to increase investment in Community Housing lodging houses as a tool to help more Australians out of homelessness and into secure housing and employment.

The report, released today by the Centre for Social Impact at the University of Western Australia , highlights how lodging accommodation managed by community housing provider, Foundation Housing, provides a cost-effective and successful model that could be further expanded to address the housing crisis.

The evaluation of Foundation Housing Lodging – which has 15 lodging houses in Western Australia –finds this model offers affordable long-term stability while addressing the holistic needs of residents through engagement and support services, promoting health, wellbeing, and social connection. The contemporary Community Housing-based lodging house provide enhanced amenities, long-term accommodation, thriving communities and connections to services. This stands in contrast to the often unsafe, short-stay and limited amenities accommodation of traditional private lodging houses.

With growing numbers of Australians seeking access to homelessness services, living precariously in unsafe housing, or sleeping rough, the analysis shows that the FHL model is a cost-effective solution to homelessness with a daily cost of only $11.63 per person, compared with $56.17 cost per support day for WA Specialist Homelessness Support Services in the recently released Report on Government Services (ROGS) 2024 data and far below long-term supported housing for those experiencing homelessness with high needs.. More than 122,000 people were experiencing homelessness in Australia on Census night 2021¹, and 174,600 households are waiting to be allocated public housing.²

“Tackling the housing crisis requires a multi-pronged approach, and we cannot neglect those who need a safe roof over their heads now while we build homes to meet long-term demand,” said Professor Paul Flatau , Director of the Centre for Social Impact UWA.

“At a time when housing is under pressure from all side, this report shows that lodging accommodation has a significant role to play in the community housing landscape.

“This model allows people to stabilise their lives and develop a long-term accommodation plan without the pressure of an imminent deadline, and helps residents achieve stability and self-sufficiency by providing ongoing support and assistance.

“This report highlights the opportunity for policymakers to help divert people from homelessness and reduce the pressure on public housing by investing in modern lodging services along the lines of the FHL model.”

Significantly, the model provides holistic supports for residents such as financial support, mental health services, health care, and drug and alcohol rehab/counselling through strong partnerships with specialist organisations, community groups and government agencies. This stands in stark contrast to the historical perception of lodging or boarding houses associated with insecure, unsafe, and marginalised living conditions.

Foundation Housing CEO Chris Smith said that lodging often represented the first critical step on a path out of homelessness, helping to unlock opportunities for employment as well as better health and well-being.

"Our affordable, safe, and secure accommodation addresses the essential needs of people struggling to secure suitable housing, fulfilling a critical role in the wider housing ecosystem,” he said.

“Research conducted for this report shows that 93% of unemployed residents felt increased confidence to start looking for employment and/or education and training due to having secure accommodation. At Foundation Housing, we see first-hand the impact that affordable and safe accommodation has on people’s health, wellbeing, independence and overall life outcomes.

“Lodging accommodation with support services like FHL’s model plays a significant role in the community housing landscape, releasing pressure from the public housing system. This is a successful and cost-effective solution helping to address the housing and homelessness crisis which sees thousands of Australians desperate for safe and secure housing.”

¹ABS, https://www.abs.gov.au/statist...

²AIHW, https://www.aihw.gov.au/report...