As Housing Crisis Deepens, More People Are Forced to Sleep on the Streets

A “heartbreaking” housing crisis is leading more people to end up on the streets, prompting advocates to once again call for a levy on short-term rentals to support essential services.

The annual street count on May 10 revealed a 25 percent increase in the number of people sleeping rough in New South Wales (NSW).

During the February headcount, officials found 2037 individuals sleeping on the streets, up from 1623 the previous year, with significant increases in coastal areas like a nearly 80 percent rise in rough sleepers in the Coffs Harbour council region.

Dom Rowe, chief executive of Homelessness NSW, urged the state government to implement a levy of at least 7.5 percent on short-term rental accommodations, similar to Victoria’s measure introduced in late 2023.

“These figures are heart-wrenching, reflecting those unable to cope with skyrocketing rental costs in the private market, as well as women and children fleeing domestic violence,” she said.

“NSW must be at least as ambitious as Victoria … the money raised through this levy must go to underfunded frontline services forced to turn away one in two people seeking help.”

Byron Shire, a popular tourist region in northern NSW, reported the highest number of people sleeping rough among all local government areas in the state, with several coastal areas like Sydney’s northern beaches experiencing large homeless camps due to a severe lack of affordable housing.

Homelessness Minister Rose Jackson acknowledged the unprecedented regional figures, saying, “We don’t just need data to tell us this—our regional communities are feeling this every day.”

Ms. Jackson mentioned that the government is exploring various options to address the housing crisis, including reviewing short-term accommodation regulations and contemplating a potential levy.

Stricter regulations have been enforced in Byron Shire, where non-hosted short-term rentals are limited to a 60-day annual cap.

Homelessness NSW is also advocating for an annual expenditure of $1 billion (US$0.66 billion) to construct 5000 social houses each year, along with $30 million (US$19.8 million) over three years for additional temporary housing.

The state opposition criticized Ms. Jackson for neglecting homelessness providers, with Liberal MP Natasha Maclaren-Jones stating, “As the housing and economic crisis continues to escalate, there is a real risk more people will experience homelessness for the first time. The NSW Labor government must act now and provide additional funding to support our already stretched homelessness services.”

Among the individuals documented in the latest street count, 64 percent were staying in vehicles, 18 percent were in open spaces, and 10 percent were in makeshift dwellings.