Homelessness is closely associated with mental health, both as one of the main reasons for becoming homeless, and because not having a place to live has an adverse effect on both mental and physical health. The combination of substance abuse and mental illness, together with the impairment in cognitive function often associated with those conditions and the psychological trauma of not having a secure place to live, contributes the deterioration in physical and mental health of people who are homeless.
There is anecdotal evidence that being provided with accommodation in Sydney results in less frequent admissions to psychiatric hospitals. Moreover, there is some empirical evidence to support a “Housing First” policy for the homeless mentally ill, which aims to provide accommodation at the time of initial contact in order to offer other services, particularly medical care, which could improved adherence, reduced ancillary costs and reduced contact with the criminal justice system after housing.