Canberra, Jun 17 (IANS): Australian Prime Minister Anthony Albanese on Saturday announced new funding for social housing amid rising demand for the charity organisation's homelessness and housing services in the country.

Addressing a party conference, Albanese said the federal government will distribute A$2 billion ($1.3 billion) among states and territories to address the shortage of affordable housing options for people with low incomes, reports Xinhua news agency.

Albanese said this will create thousands of homes for Australians on social housing waiting lists and will increase housing supply sooner, with all funding to be committed by states and territories within two years ending June 30, 2025.

The announcement came after Treasurer Jim Chalmers in May announced the federal budget with a strong focus on cost-of-living relief as inflation remains the "primary economic challenge" for the country.

Last month, charity organisation Mission Australia published its Homelessness and Stable Housing Impact Report, revealing that demand for its homeless support services has increased by 26 per cent over the last three years.

It calls on governments for greater investment in homelessness prevention and support services, and for investment in 1 million new social and affordable homes.