This needs assessment demonstrates both the scale of unmet demand for Supportive Housing (SH) in Adelaide and the compelling case for investment. With an estimated 156 units required by 2030 to meet current and forecasted need, the report outlines a clear pathway for delivering housing and support that is both socially impactful and economically responsible.
The total government investment required to build and operate these units over a five-year period is approximately $50.1 million (in nominal dollars). The annual operating and services subsidy, after being partially offset by tenant rent contributions, is estimated to be $4.3 million (in 2025 dollars), once all units have been constructed. However, this investment is also substantially offset by government cost savings of $1.44 for every dollar spent on service costs, through reduced use of the health, justice, and homelessness systems. Cost savings are estimated to be $4.2 million per year (in 2025 dollars).
Beyond fiscal savings, the case for SH is strengthened by its social return. The delivery of stable, supported housing measurably improves wellbeing—estimated to deliver over 150 wellbeing- adjusted life years (WELLBYs) from 2026 to 2030 across the target population—and enables individuals to live with dignity, autonomy, and improved health and safety outcomes. The benefit-cost ratio of the program is 1.56:1 over the 60-year analysis period.
SH is a proven, evidence-based model with strong local and international support. Delivering the necessary infrastructure and services in Adelaide would represent a foundational step in realising the goal of ending chronic homelessness in South Australia. With coordinated leadership and strategic investment, it is possible to ensure that homelessness becomes rare, brief, and non-recurring.