Calls for $7.2b social housing injection

Homelessness is predicted to surge nine per cent next year as the fallout from the coronavirus pandemic continues to shake the economy, a report says.

The report is calling for a $7.2 billion federal government injection into social housing, to curb the problem while creating 18,000 jobs each year over four years.

The findings are in a report released on Tuesday by fairer housing campaign group Everybody's Home and undertaken by Equity Economics.

It also says the $7.2 billion injection would boost the economy by $18.2 billion to help the nation recover from the pandemic.

Everybody's Home spokeswoman Kate Colvin says a secure, stable home is a basic need.

"Homelessness and housing stress are a hothouse for anxiety, depression, and family breakdown," she said.

"It's in everyone's interest to prevent this.

"This modelling paints a frightening picture of the months and years ahead."

The study compares conditions in labour markets from February to June next year, estimating the impact on employment and economic growth from the proposed boost to social housing investment.

It says 24 per cent more Australian families will experience housing stress next year due to the impact of the health crisis.

NSW is expected to be the worst off, with a 41.9 per cent predicted rise in housing stress and 19.1 per cent increase in homelessness.

For Victoria, a 13.1 per cent increase in homelessness is predicted and a 32.4 per cent increase in housing stress.

The impact is less severe in Queensland, with the modelling showing a 3.6 per cent increase in homelessness and a 11.4 per cent rise in housing stress.

The study comes after an Australian Institute of Health and Welfare report published last week showed 260 people were turned away from homelessness services each day during the 2019/20 financial year.

Australian Alliance to End Homelessness chief David Pearson has called for more federal funding and leadership to reverse the alarming data.