Reducing the $2.7B Cost of Loneliness with Community Asset Activation

Theresa Mullan

7th April 2026

Across Australia, thousands of community halls, sporting pavilions, and meeting rooms sit dark for hours every day. While often viewed as a simple maintenance liability, these empty spaces represent a missed opportunity to address a national crisis — the cost of loneliness epidemic.

For local councils, this isn’t just a social issue; it’s a considerable cost. Transforming these underutilised facilities through a strategic approach to community asset activation is the most direct and powerful way to shift community venues from cost centres to essential, thriving local hubs that actively combat social isolation and improve community wellbeing.

What is the Economic Cost of Loneliness for Australian Councils?

According to a landmark report by the Bankwest Curtin Economics Centre, loneliness is associated with a dramatic increase in healthcare utilisation. The economic implications are vast, with national estimates suggesting that loneliness costs the Australian economy $2.7 billion annually.

This cost is driven by:

Increased GP visits: Socially isolated individuals visit doctors more frequently for both physical and emotional support.
Hospital admissions: Isolation is a leading risk factor for chronic conditions and emergency mental health presentations.
Lost productivity: The psychological toll impacts workforce participation and local economic activity.

Why are 40% of Young Australians Experiencing Loneliness?

While loneliness is often framed as an issue for older people, recent data suggests the crisis is skewing younger. A 2025 study from the University of Sydney reveals the main reasons young Australians (aged 15 to 25) are experiencing loneliness include:

Lack of "Third Spaces": Young people lack physical locations outside of home and work where they can gather without a high financial barrier, leading to increased social fragmentation.
High Cost of Living: The high cost of living is cited by study participants as a factor that significantly hinders social interactions.
Mental Health: Poor mental health is a significant factor that increases the risk of loneliness.
Socioeconomic Challenges: Limited life circumstances and broader socioeconomic challenges contribute to a higher risk of becoming lonely.
Technology's Dual Role: While technology can help build connections, it also contributes to isolation.

The same study found that 43 per cent of young people in this age group feel lonely, with one in seven suffering from persistent loneliness (lasting at least two years), which is strongly linked to high psychological distress and physical issues.

So, what can councils do to combat the impacts of loneliness?

How can Local Councils Improve Community Wellbeing through Community Asset Activation?

Local government assets are the primary "third spaces" of Australia. When councils move from passive "infrastructure management" to active "place-making and activation," they become the frontline of preventative healthcare.

Every time a council simplifies the process of booking their spaces, facilities, parks, and reserves for a local pottery group, a sporting club, or a seniors’ morning tea, they are facilitating social prescribing. By lowering the barriers to entry, councils can:

Activate Local Hubs: Giving residents a physical reason to leave the house and engage.
Support Grassroots Connectivity: Empowering volunteer-led groups to thrive without administrative red tape.
Strengthen Social Capital: Building the resilient connections that reduce the long-term demand on the healthcare system.

What is Community Asset Activation?

Community asset activation is the process of mobilising and utilising a community's existing resources to drive measurable improvements in local wellbeing, social cohesion, and economic prosperity. It represents a paradigm shift, transforming underutilised, passive council-owned facilities (such as halls, sporting assets, and libraries) into vibrant, active centres that directly address community needs, like loneliness and social isolation.

Strategic community asset activation, particularly within a local government context, is grounded in several key components:

Asset-Based Community Development (ABCD): This approach focuses on leveraging existing community strengths and capabilities rather than focusing resources solely on addressing deficits.
Place-Making and Public Space Activation: Deliberate strategies to increase the utilisation of council-owned public areas (parks, streets, venues, etc.) by enhancing them to be welcoming, dynamic, and lively.
Infrastructure Rehabilitation and Resilience: Prioritising the repair, restoration, or strategic upgrading of aging public infrastructure (e.g., community halls, playgrounds) to ensure these essential 'third spaces' are accessible, sustainable, and resilient for long-term community use.
Fostering Social Capital: Implementing programs and providing physical spaces that strengthen community ties, encourage active citizenship, and enable cultural exchange, which builds the social resilience necessary to combat loneliness.

From Cost Centre to Connected Community Hub

At SpacetoCo, we believe the solution to Australia's $2.7 billion economic cost of loneliness problem starts with an open door. By digitising the "friction of access" with modern booking processes to facilitate community asset activation, councils can transition their facilities from underutilised liabilities into thriving community assets.

We don't need to build more infrastructure to solve the loneliness crisis; we simply need to unlock the doors of the incredible spaces we already have by making them easier to find, book and use to host community-focused activities that bring people together and give them a sense of belonging.

Ready to Find Connection or Lead the Change?

Individuals & Community Groups

While local government is central to the solution, individuals can also take immediate steps to find connection by actively seeking out and utilising available community assets:

Look for 'Third Spaces': Identify low-cost or free public spaces in your local area—community halls, libraries, or council-owned sporting pavilions—that host regular, accessible events or host your own! Find local venues on SpacetoCo to make a booking for an upcoming activity or event.
Find Your Group: Seek out local groups based on a specific interest (e.g., pottery, book clubs, fitness classes). Joining an activity-based group provides a shared purpose, which lowers the pressure of simple social interaction.
Ask Your Council: Providing direct feedback on underutilised assets can prompt your council to take action. For example:
- If you notice an underused space in your suburb, approach your local council to enquire about booking availability or suggest a public activity.
- If you are struggling with making bookings for council-owned properties, give them feedback about your experience and ask for easier booking processes.
Volunteer: Engaging in volunteer-led initiatives within your local government area is a powerful way to build new social networks while contributing directly to social cohesion.

For Councils & Community Venues:

Ready to turn empty spaces into connected hubs? Book a Demo with SpacetoCo to see how we help councils increase community asset activation and improve community outcomes.