The tragic death of a baby in a homeless encampment has cast a harsh spotlight on Australia's worsening housing affordability and cost-of-living crisis. Police discovered a 37-year-old woman and two infants on Saturday after being called to Cadell Place along the Murrumbidgee River in Wagga Wagga, located in the NSW Riverina region, where many homeless individuals have set up tents.
One of the babies was found deceased, while the woman and the other infant were transported to Wagga Wagga Base Hospital. NSW Police have stated that there are no suspicious circumstances surrounding the incident.
This heartbreaking event has intensified demands for urgent action to prevent similar tragedies from occurring. Kate Colvin, chief executive of Homelessness Australia, emphasised that such incidents are not isolated. 'Tragedies like this don't come out of nowhere,' she said. 'They are the result of a housing system that has broken to the point that there is no safe housing or adequate support available, even for a mother with a newborn baby. It is completely unacceptable that a family welcoming a new baby cannot immediately access a home, but rentals are unaffordable and social housing is unavailable.'
Housing System Under Strain
The National Housing Supply and Affordability Council has recommended a long-term approach for investment in social and affordable housing following its 2026 State of the Housing System report, which revealed that rental and purchase affordability have continued to deteriorate. In 2025, approximately one-third of median income was required to pay the median rent, placing lower-income renters at increasing risk of rental stress and homelessness.
The report also highlighted that women, particularly single mothers and elderly single women, face especially difficult housing conditions. Single-parent families—80 per cent of which are headed by women—experience the highest rates of housing and financial stress of any family type and are most likely to be in poverty after housing costs are deducted.
'Right now, rising rents and the cost of basics like food and fuel are outpacing incomes, pushing more families out of housing while services remain in crisis mode,' Ms Colvin added. 'Without change, we will keep seeing tragedies like this, each one heartbreaking, avoidable, and a reminder that people are being failed long before crisis hits.'
Government Response Expected
The federal government is anticipated to announce changes to property investor tax breaks, including the capital gains tax discount and negative gearing, when it delivers its budget in mid-May. These measures aim to address the systemic issues contributing to the housing crisis and prevent further avoidable tragedies.
