The aim of this paper is to understand the nature and extent of homelessness in Australia and apply the sociological conflict theory to this chosen topic and examine why it is a problem. It will focus on defining what a social problem is, what homelessness is and will go on to explore how housing contributes to homelessness which will link back to the theory we are using to apply. It will therefore also through the basics of conflict theory before applying it to the chosen problem and go through relevant terms such as the stratification theory. This paper argues that homelessness is an issue that arises because there is inequality in the system in terms of distribution of power and money and resources.