Two-thirds of Australian councils consider homelessness a significant or acute issue in their communities, up from about 10 per cent in the 2010s.
The finding comes from a recent University of New South Wales study, which said councils had been left ill-equipped and on the front lines of a post-pandemic housing crisis.
Published in the Australian Journal of Social Issues, the study surveyed 167 councils and included case studies across metro, regional and coastal areas.
Lead researcher Andrew Clarke, from UNSW's School of Social Sciences and City Futures Research Centre, said the geography of homelessness had changed dramatically.
"Homelessness is no longer an issue faced by a handful of inner-city councils, it's become a widespread challenge across Australia," Dr Clarke said.
"The post-pandemic housing crisis has pushed homelessness into communities that haven't historically dealt with it."
Councils were increasingly expected to act despite having no formal responsibility for homelessness policy or service delivery, the study found.
More than three-quarters of councils said concerns from residents, businesses and community groups were the main trigger for action.
"As homelessness has become more visible in public spaces, councils - responsible for parks, libraries and streets - are effectively on the frontline of the crisis," Dr Clarke said.
Among councils that considered homelessness a significant issue, 95 per cent said it had worsened over the past five years.
About two-thirds described the increase as "substantial".
Regional cities reported the highest concern levels, with 88 per cent identifying homelessness as significant, acute or very acute.
The study found councils were increasingly acting as the "eyes and ears" of local homelessness systems, with many identifying rough sleepers and linking them to support services.
Others co-ordinated charities and agencies or helped facilitate temporary accommodation and affordable housing projects.
Researchers said councils were also shifting away from punitive responses, such as moving homeless people on from public spaces.
"There's been a real cultural shift, councils want to prioritise care and co-ordination rather than compliance," Dr Clarke said.
But these efforts were being undermined by severe shortages of affordable and social housing, the report said.
Nearly 80 per cent of councils surveyed cited financial pressures as a major barrier, while many also pointed to staff shortages and limited legal powers.
Local governments can play an important role in responding to homelessness, Dr Clarke said.
But lasting change would require major investment in social housing and stronger co-ordination between all levels of government.
"The takeaway is clear: councils are part of the solution, but they can't do it without the resources and housing supply needed to back them up," he said.