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Indigenous housing system failing families

National strategy backed by First Nations and government leaders offers clear reform pathway

26 February 2026

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Nearly one in eight low-income Aboriginal and Torres Strait Islander households are without adequate housing. A new framework involving University of Sydney researchers offers long-term governance for sustainable and effective Indigenous housing, including transparent accountability. 

The framework follows a national inquiry, held last year, which found Australia’s Indigenous housing system is fragmented, poorly coordinated and failing to meet demand. The Inquiry into Indigenous Housing, revealed a system where governance arrangements are complex and poorly coordinated, and efforts at reform have fallen short.

The latest research, funded by the Australian Housing and Urban Research Institute (AHURI), outlines the scale of need and sets out a practical, long-term National Aboriginal and Torres Strait Islander Housing Strategy. The strategy is formally endorsed by both First Nations housing leaders and senior government representatives.

‘The Indigenous housing system in Australia: case study evidence’, released today, reviewed Indigenous housing systems at federal, state and territory level via document analysis and 60 stakeholder interviews. 

A third and final report was also released today, proposing four key pillars of reform: 

  • Strengthening governance by legislating and properly funding shared decision-making through the Housing Policy Partnership.

  • Committing transparent, long-term investment to meet unmet demand.

  • Growing Indigenous community-controlled housing ownership and management.

  • Expanding culturally appropriate home ownership and rental pathways.

Research Associate Richard Benedict from the Sydney School of Architecture, Design and Planning, who led the review, said the evidence points to a structural accountability failure.

“We uncovered a system where responsibility is spread across at least seven national agencies, yet no single minister or body is ultimately accountable,” Mr. Benedict said.

When no one is clearly in charge, progress stalls. Funding becomes opaque, reform efforts lose momentum, and communities pay the price. That gap between policy rhetoric and implementation is stark.

Mr Richard Benedict

Research Associate, School of Architecture, Design and Planning

The Inquiry found that in 2021, around 45,700 low-income Indigenous households had unmet housing need - almost double the rate for all Australians.

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 a say in delivery of housing services.

However, Mr. Benedict said these had not resolved governance issues or fulfilled commitments.

“Closing the Gap requires governments to grow the housing sector, but we found only 13 percent of Indigenous social housing tenancies were managed by registered community housing organisations in 2024/25,” he said.

The share of tenancies managed by registered Indigenous Community Controlled Housing Organisations also varied greatly across jurisdictions, from zero percent in the ACT and Tasmania to 28 percent in Victoria.

“We know community-controlled housing works,” Mr. Benedict said. 

“But the sector has been expected to grow without the long-term funding certainty, stock transfers or growth strategy needed to make that possible.”

The Inquiry was overseen by an Indigenous Advisory Committee of First Nations housing experts and involved 60 stakeholder interviews across federal, state and territory systems.

Researchers say the next step is clear: secure the future of the Federal Government's Housing Policy Partnership, invest in additional housing supply, fund Indigenous housing peak bodies, and build sector capacity for long-term growth.

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The Indigenous housing system in Australia: case study evidence

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Read the report

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