Closing the Gap - AHURI research and the Homes for Australia priorities

No matter the metric, First Nations Australians face entrenched housing disadvantage. The First Nations homelessness rate is 10 times that of non-Indigenous people. An estimated 45,700 low-income First Nations households had unmet housing needs in 2021 – equivalent to one in eight and almost double the rate for all Australians.

About 41% of First Nations people own their own home, compared to 67% of non-Indigenous people. First Nations households are also over-represented in social housing due to difficulties accessing private rental accommodation.

Emerging trends further heighten the need for a rethinking of housing policy, design and investment. Australia's First Nations population is set to grow to around 1,060,000 by 2031, more First Nations peoples are predicted to move to outer regional and remote areas where housing quality is often worse, and First Nations regional and remote communities will experience climate change impacts earlier and disproportionately.

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A framework endorsed by First Nations and government representatives

A 2026 AHURI inquiry, involving researchers from six universities, explored how First Nations housing is managed, funded and regulated. It found First Nations housing systems are fragmented across federal, state and territory levels. At least seven national agencies administer core First Nations housing policy, but no national agency or minister has designated overall responsibility.

It also noted positive initiatives like the 2020 Closing the Gap agreement and 2022 Housing Policy Partnership required governments to formalise shared decision making and give First Nations peoples say in delivery of housing services. However, these initiatives had not resolved governance issues or fulfilled commitments.

The Inquiry delivered a framework for a National Aboriginal and Torres Strait Islander Housing Strategy built around four pillars, which was endorsed by an Inquiry panel of First Nations leaders and government representatives.

Pillar 1: Strengthening governance

To ensure governments follow through on commitments, the Inquiry recommended legislating and funding the Housing Policy Partnership. Indigenous housing peak bodies, which had proven effective advocates for the Indigenous community-controlled housing (ICCH) sector, should be strengthened with long-term funding, and the Inquiry’s Indigenous Advisory Committee called for audits of Closing the Gap performance.

Pillar 2: Ensuring sufficient investment

The Inquiry recommended long-term government funding for First Nations social housing to address unmet demand.

Pillar 3: Boosting community-controlled housing

Another recommendation was to progressively increase housing stock owned and managed by the ICCH sector and establish geographic cost benchmarks for services and subsidies to address funding gaps between rent revenues and costs. The First Nations Funding Round under the Government’s Housing Australia Future Fund aligns with this strategy, though additional funding is likely needed.

Pillar 4: Enhancing tenure choices and pathways

To facilitate rental access, the Inquiry recommended strengthening anti-discrimination legislation and funding First Nations rental advocacy and support services. Governments should promote culturally appropriate home ownership pathways and establish a Housing Innovation Fund to support models like community land trusts and shared equity.
 

Assisting First Nations people to secure home loans

In 2024, Indigenous Business Australia (IBA) engaged AHURI to research how to support access to affordable, appropriate housing — insights from which informed a plan for IBA and other parties to support First Nations people to secure home loans.

Barriers to homeownership are numerous, including the ongoing impact of dispossession and fewer Indigenous households having parents with sufficient wealth to assist in purchasing a home. Researchers recommended targeted marketing to normalise First Nations home ownership and shift wider stereotypes and strengthening financial literacy around intergenerational wealth and property ownership. To have even greater impact, researchers identified a need for place-based, community-led, commercially viable investment to grow First-Nations-owned businesses, create jobs, and ultimately bolster community wealth.
 

Exploring shared equity schemes

AHURI research into shared equity schemes found a number of state schemes (including Tasmania, Victoria, and Western Australia) allowed First Nations persons to participate with lower deposit requirements or exemptions from income and asset limits. Such schemes hold potential for increasing home ownership rates among First Nations people; designing them well can maximise desired outcomes and avoid unintended consequences like house price inflation.
 

Establishing co-design partnerships

A 2022 AHURI study examined what makes tenancies succeed for First Nations people — and what drives lasting housing outcomes.

It found tenancy support worked best when co-designed by governments and Indigenous organisations and when delivered by, or with, Aboriginal-controlled organisations and local First Nations staff. Good programs were flexible, offered wraparound support, educated tenants on their rights and responsibilities, and supported early intervention.
 

Improving First Nations housing in regional and remote Australia

AHURI research published in 2024 predicted First Nations populations in outer regional and remote areas would grow 10.4% between 2021 and 2026. The clearest need for many remote communities was more, and better, housing. Improvements to essential infrastructure (power, water and telecommunications) are essential to support this and enable First Nations peoples to remain in community and live on Country. The Federal Government’s Remote Housing Partnership Agreements roughly align with the study’s recommendations; however, to-date only one agreement has been signed, with the Northern Territory Government.

Earlier research into sustainable regional and remote First Nations housing found existing stock can't consistently provide healthy, comfortable indoor environments — a problem likely to worsen with climate change. Operating and maintenance costs are also three times greater for remote housing than in capital cities, so reducing these costs is essential.

Researchers found a strong case for scheduled, planned maintenance — multiple trades checking and fixing issues before they escalate — rather than responding only once things break. Maintenance should be planned using life-cycle costing frameworks, which consider a structure's lifespan and benefits, identifying where strategic investment can deliver savings. Planned maintenance programs are likely to improve householder health outcomes, boost local employment, and cut government spending elsewhere — especially in health.
 

Increasing First Nations staffing and culturally specific support

AHURI was previously commissioned to evaluate NSW’s Homelessness Industry and Workforce Development Strategy 2017-2020.

Researchers found the NSW homelessness sector supported a high proportion of Aboriginal clients (~35%) but this was not matched by a high proportion of Aboriginal-led organisations or staff. There was a need to increase the numbers of First Nations staff, especially in leadership positions and on boards. Tailored recruitment, training and career pathways, specialist and dedicated Aboriginal roles, and stronger ties with local communities and elders were all identified as ways to achieve this. Mainstream organisations could also benefit from cultural competency training. Findings from this research are likely to be applicable nation-wide.

More homelessness-specific AHURI insights will be explored in the sixth brief in this series, addressing the Homes for Australia priority of 'supporting people experiencing homelessness, crisis, and family and domestic violence with a strengthened system'.

For in-depth study findings, policy recommendations, and other insights into how Australia can build more homes, follow the research hyperlinks within this Brief, or visit AHURI.edu.au.