Financial services: A preventive measure against homelessness? Evidence from Australia

This study sets out to investigate the effectiveness of financial services routinely provided to people at-risk of or experiencing homelessness. This study brings together a landmark nationwide panel survey of almost 1,700 people, the Journeys Home survey, with rigorous, random effects logit models. In doing so, this study yields new knowledge which will help to inform social policy and practice with an emphasis on prevention. Specifically, this study reveals that having received an eviction notice in the past three months is associated with a significantly higher likelihood of experiencing literal homelessness, statistically significant at the 1% level. Similarly, being three months behind on one's rent or behind on any mortgage repayments are both associated with a higher likelihood of experiencing cultural homelessness, statistically significant at the 1% and 5%, respectively. Across all three intervention points (i.e., receiving an eviction notice in the last three months, being three months behind on rent, and being behind in mortgage repayments), financial services were all found to perfectly predict not entering literal homelessness. These results may indicate that financial services are effective at preventing entry into literal homelessness. However, further research is required to extend upon the findings reported here.