In recent years, demand for temporary housing has been one of the most significant issues for the industry. Because of rising rental costs, many have faced the risk of homelessness, with many experiencing financial hardship and persistent economic disadvantage. This has been exacerbated by the economic impacts of recent global events, including the COVID-19 pandemic, with the economic consequences resulting in more individuals and families under financial stress. The shortage of affordable housing and rising rent costs have placed significant pressure on homelessness, which has ramped up demand for crisis accommodation service providers. Industry revenue is expected to increase at an annualised 1.6% over the five years through 2025-26 to $1.8 billion. Greater housing stress has boosted demand for crisis housing in recent years. Family breakdowns are one of the main reasons for housing transiency and are a crucial driver of demand for crisis and refuge accommodation. Inflationary and cost-of-living pressures will sustain industry demand, limiting declines in revenue, which is expected to inch down 0.8% in 2025-26, mainly because of stabilisation in the housing market and gradual economic recovery, easing the need for immediate crisis intervention. The Budget 2025 includes considerable additional money for disability assistance and social housing, including $60 million per year for disability residential care and $128 million over four years for new social housing in Auckland, supporting industry profitability. Several factors, including a shortage of affordable housing, economic hardship, disabilities, mental health conditions and addictions to alcohol, drugs and gambling, influence homelessness. Though these issues suggest a continued demand for crisis and care accommodation services, industry growth is projected to be tempered by cost pressures in 2028-29. Also, while ongoing housing affordability issues and an aging population are anticipated to drive industry growth, funding constraints will limit the expansion rate. Overall, industry revenue is forecast to slightly plunge at an annualised 1.9% over the five years through 2030-31 to $1.6 billion.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.