Sweeping changes to housing policy with greater emphasis on providing long-term accommodation than emergency shelters are needed, according to a new report commissioned by the Simon Communities of Ireland.
The report, Settlement First, says placing homeless people in local authority housing or the private rented sector is more effective and affordable in the long run in the battle against homelessness.
However, it says there are a number of challenges for Government departments, local authorities and voluntary organisations.
Conor Hickey, federation director of Simon, said if the policy shift was followed through, the demand for homeless hostels and shelters could be dramatically reduced.
There was also a compelling economic argument in favour of providing more long-term accommodation solutions.
"Meeting people's long-term housing needs immediately and providing whatever support is necessary directly to the client in their own home is substantially more cost-efficient and more humane than housing someone in emergency accommodation for lengthy periods," Mr Hickey said.
The cost of keeping a person in emergency accommodation is €30,000, compared to less than €12,000 in private-sector accommodation.
The report, co-funded by Simon and the Combat Poverty Agency, was undertaken by TSA consultancy. It makes a number of recommendations aimed at the State, local authorities and voluntary agencies.
It says there is a need for local authorities and agencies to agree on a definition of homelessness which would inform policy and planning. Some local authorities, for example, narrow the definition to exclude those not from the area or who are considered to be "intentionally homeless".
Local authorities' housing policies can also work against homeless people who are single, it says.
For example, single people account for 68 per cent of the current housing waiting list, but just 43 per cent of the allocations.
The report says limits on capital assistance schemes should be lifted to allow voluntary agencies to build housing units for homeless people.
Latest figures show there were more than 5,000 people homeless in 2002, compared to 2,501 in 1996. While this represents a major increase, the numbers sleeping rough have fallen dramatically in recent years due to the supply of emergency-type accommodation.