The Australian Institute of Health and Welfare research looked at public rental housing, community housing, state owned and managed Indigenous housing as well as Commonwealth State housing.
It found Commonwealth State Housing Agreement housing helps the most people in need, with approximately 378,000 assisted households in Australia.
Institute head of Housing Assistance Tracie Ennis says people in crisis situations are one of the main target groups for housing services.
But Federal Housing Minister Tanya Plibersek says she is shocked some low-income families are missing out on public housing because of the waiting list blowout.
Ms Plibersek says there has been a massive under-investment in public housing over the past decade.
"I am surprised by the extent of the problem [and] the very long waiting times that are reported," she said.
"I knew things were bad, because you can't take $3 billion out of public housing over the last 10 years and not see the effects of that."
Source: By Australian Broadcasting Corporation