How the housing crisis is fuelling a mental health catastrophe

Sydney Morning Herald

16-06-2025

Every day more Australians are forced to spend a huge share of income on rent or mortgages, putting them under intense stress. In 2024, all major cities hit record rental unaffordability: the National Shelter/SGS Rental Affordability Index reports that rents have surged so much that householders on JobSeeker or basic pensions now find every market 'critically unaffordable'.
In Sydney the median rent is $700+ a week (30 per cent of median income) and in Perth $600+ (31 per cent). Homeownership is ever more distant, vacancy rates have collapsed, and poorer renters in Melbourne, Adelaide and Brisbane are facing similar gaps between incomes and costs.
This housing stress is now routine. A recent survey found four in five renters spend over 30 per cent of their income on housing. Over three-quarters of renters and mortgage-holders say the crisis has made them fear for their financial security. The toll shows up starkly on our streets and doorsteps. Australia's last census (2021) counted about 122,494 people as homeless on one night: including 7600 rough sleepers, and 23 per cent of those were aged 12 to 24.
Meanwhile, everyday Australians tell similar stories of constant anxiety: pressure to find or keep a home, desperate rental searches, or living out of garages and boarding houses, eroding their sense of dignity. Tenants describe how endless rent hikes and knock-backs made them feel 'less human', always worried about losing any roof over their head.
As housing stress deepens, Australia is also seeing a surge in mental ill-health. Decades of data show young people's psychological distress and diagnosed disorders have soared. For example, analysis of national surveys found the share of 15 to 25-year-olds with high psychological distress more than doubled from 2007 to 2021. The proportion of young Australians reporting a mental disorder in the past year jumped from 26 per cent in 2007 to about 40 per cent by 2022. In 2021–22, three-quarters of 15 to 24-year-olds had at least one chronic condition, with anxiety disorders affecting 26 per cent and depression 17 per cent.
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Suicide and self-harm remain alarmingly high: they are the leading cause of death for young men (among injury deaths) and anxiety disorders the top issue for young women. In short, mental illness is now the single largest health burden facing teens and young adults in Australia.
The pressure on mental health services is immense. GPs provide 85 per cent of mental-health prescriptions, and in 2021–22 people aged 12 to 24 already made up 23 per cent of all Medicare-funded mental health service users.
Sharon Callister, CEO of welfare group Mission Australia, notes that one in five young people report severe distress and more than a fifth rank mental health as their biggest personal challenge. She warns 'so many young people are struggling with stress, anxiety, loneliness and depression', highlighting an 'urgent need for increased mental health support'. Clinics and hotlines are overwhelmed, and long waits for care are the norm, a reality far harsher for those also battling housing insecurity.