A study has found the homelessness rate in Launceston could increase by 17 per cent by mid-2021 compared with the pre-pandemic rate under a slow economic recovery without a drastic increase in social housing stock.
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Commissioned by Everybody's Home, an organisation dedicated to reducing homelessness Australia-wide, the study analysed government housing investment and economic outlooks across labour market regions should the Coronavirus Supplement be phased out.
It found a potential 30 per cent increase in the number of people experiencing housing stress in Launceston and the North-East, well above the predicted Australian average of a 24 per cent increase.
The unemployment rate could also approach 8 per cent in the region by mid-2021.
The study by Equity Economics, which provides research to the not-for-profit sector, analysed the impact of the Coronavirus Supplement of $550 per fortnight on top of JobSeeker, formerly Newstart.
It raised concerns about the impending reduction in January, with a potential return to pre-pandemic levels beyond March.
"The latest ANUpoll showed that almost one in eight respondents had trouble paying their rent or mortgage, up from one in 15 in April 2020," the study reads.
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"The supplement is due to be fully phased out in March 2021 and there will then be a significant increase in housing stress and homelessness due to the economic downturn."
In particular, the rate of older women experiencing homelessness was estimated to grow the fastest, having already had the quickest increase in recent years.
Housing costs have continued to increase in Australia across the board, including 51 per cent for private renters over the past 20 years. Until this year, the real rate of JobSeeker had not increased since 1996.
The study again urged greater social housing investment, praising Victoria for leading the way.
The study came a few days after the Australian Institute of Health and Welfare's latest annual specialist homelessness services statistics were released, showing that less than 50 per cent of homeless Tasmanians were assisted into accommodation in 2019-20.
An average of 36 requests for assistance were unmet each day in Tasmania, the figures revealed.
The state fared far worse than the national average, prompting housing and homelessness body Shelter Tas to again point out the "chronic shortage" of affordable rentals.
Tasmania's 2020-21 budget provided $300 million towards housing and homelessness services, including $100 million to build up to 1000 new homes over three years. An expressions of interest process is under way for these builds.