The number of Hunter people sleeping rough is expected to increase by an alarming 40% over the next 12 months, placing the region as the third highest area for homelessness in the country.
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The Hunter (excluding Newcastle) falls behind only Far West Orana NSW (59%) and Mandurah, Queensland (55%) according to a new analysis which also predicts the number of people facing housing stress which is also tipped to rise by 40% in the wake of the COVID19 pandemic.
The analysis by Equity Economics will be released on Tuesday and says housing stress is set to increase by 41.9% in NSW, 42% in Victoria, 23.7% in the ACT and 25.9% in Tasmania.
It has also forecast that the number of homeless people in NSW will rise by 19.1% and by 13.1% in Victoria and 14.1% in Tasmania.
Nationally, homelessness is expected to rise by nine per cent, with a 24 per cent increase in the number of families facing housing stress.
Forecast increase in homelessness February 2020 to June 2021.
NSW is set to be hardest hit because it has a larger proportion of households that rely on two incomes to pay the mortgage.
The report was commissioned by Everybody's Home, a coalition of welfare organisations campaigning against homelessness, and calls for a $7 billion federal government investment in social housing. The report says this investment could boost the post-pandemic economy by $18.2 billion and create 18,000 jobs per year over four years.
Kate Colvin, a spokeswoman for Everybody's Home, said the economic modelling "paints a frightening picture of the months and years ahead".
Gareth Ward, NSW Minister for Families, Communities and Disability Services said the state government has invested more than $100 million in new funding to prevent and respond to homelessness during the pandemic.
"We will continue to work closely with our non-government partners to support people who are homeless or at risk of homelessness, by helping them secure housing and connecting them with the services and support they need to rebuild their lives," he said.
Luke Howarth, Assistant Minister for Community Housing, Homelessness, and Community Services said the federal government expected to invest around $8.4 billion to support housing and homelessness in 2020-21.
