Melbourne Would Actually Save Money By Housing the Homeless

Every year, like clockwork, Melbourne pats itself on the back for being crowned the "world's most liveable city." Between the city's flawed train ticketing system and the Melbourne Eye it's not clear how or why The Economist keeps giving the city the top spot, which it's done every year since 2011. At the same time though, there's been a growing number of people struggling to keep a roof over their heads. And "growing number" is an understatement. Over the past two years, the city council estimates the number of people sleeping rough in the CBD has grown by 70 percent. Now new research, released Thursday by Melbourne University, says homelessness is at "emergency levels" in the world's most liveable city.

The Case For Investing in Last Resort Housing argues there's a serious economic argument for providing the homeless with secure accommodation. The report found that for every person provided with "last resort housing" the city could save $10,800 a year. This figure factors in a number of things, including the fact that "if homeless individuals find stable accommodation they require less health care… and are less likely to be involved in crime (both as victims and perpetrators)." If you want to get down brass tacks: according to the study, every $1 invested in "last resort housing" Melbourne would see $2.70 worth of benefit for the city.

The report has come in the wake of the city council's so-called "rough sleeping ban." Proposed after authorities attempted to remove the city's homeless camps at City Square and Flinders Street Station, new laws could mean fines of $250 for people who leave items unattended and up to $2,000 for anyone found "illegally camping" in the city. The amendments were condemned this week by the United Nations Special Rapporteur on the Right to Housing, Leilani Farha. In a press release, Farha said "the criminalisation of homelessness is deeply concerning and violates international human rights law."

Jenny Smith, CEO of the Council for Homeless People, told VICE she shares some of Farha's concerns. "City of Melbourne has been a leader in homelessness, but if it was to pass some of this regulation, the UN has suggested it would be human rights breach. It would push vulnerable people into the shadows, and onto factory floors…"

Melbourne Lord Mayor Robert Doyle has strongly rejected the UN's "homeless ban" label. "It's a little bit ridiculous that from far away New York the focus is on a by-law in Melbourne when you think about the other things that are on the UN's plate around the world," he said in a statement to VICE. "We have no case to answer about banning homelessness and we've said that from the start. Before you fire off these missives wouldn't it have been an easier thing just to ask us, what does this by-law mean?"

"We want the ability to remove these large encampments of rubbish that clog the footpaths. It's not about banning homelessness at all," the Lord Mayor Doyle clarified. "That's not what we want to do or nor should we do it. The homeless don't have fewer rights than the rest of us, but they don't have more rights either."

"Homelessness is expensive. It is impossible to care for your health when you haven't got a safe and secure home," Jenny Smith said, welcoming Melbourne Uni's research. "It's great to see the evidence coming out to support what we know in practice." However, she warns that only focusing on crisis accommodation is short-sighted. "If you go into emergency accommodation, there needs to be an end point," she says—there needs to be a pathway to get into affordable permanent housing.

We do have a problem with supply and access to housing," Jenny says. "Even if you're high priority [which includes rough sleepers and people escaping family violence] you're going to be waiting for nine months… Many people on the public housing list will never get a home." This is because, currently, there are more than 33,000 people waiting for somewhere to live in Victoria—a number that's rising as rents soar in the city. Close to the city, less than two percent of housing is affordable to low income earners.

While the Melbourne Uni research admits Melbourne needs more public housing, this latest report argues that "last resort accommodation" (which includes legal rooming and boarding houses, and emergency accommodation) should be used to get people off the street right now. In the past three years though, it's been getting harder to get into last resort housing in Melbourne, with the city losing 460 rooms. "There are another 110 at risk of closing in the short term," the report notes—including the Gatwick in St Kilda. The controversial boarding house, which has been recently sold, had 80 rooms housing some of Melbourne's most vulnerable people. Speaking to the ABC, Victoria's housing minister Martin Foley celebrated its closure saying, "With much of Fitzroy Street and surrounds being held back by the Gatwick we can now look forward to working with traders, council and the community to turn a corner in the area's future."

The question of where Melbourne's homeless fit in this gentrified future still remains. As Smith explains, people sleeping rough tend to stick to the city because "with all the lights and the cameras, that makes them safer." Both the local council and state government have announced funding to reduce homelessness in Melbourne, which includes housing. However, as Smith notes, "the initiatives the government has in place will come online in the next 18 months to two years." This is where Melbourne Uni's push for "last resort accommodation" could be helpful—as an immediate stop gap solution between getting off the streets and getting into public housing.

Melbourne City Council will be accepting public feedback about the proposed law changes affecting rough sleepers until March 17.

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