The pressing issue of homelessness in Australia is largely caused by a shortage of affordable accommodation. Unexpected results from a study into the experiences of homeless families, however, revealed that many people held the perception that asylum seekers, refugees and migrants are given greater priority by welfare agencies for housing assistance. Analysis of the interview data is used to illustrate how public and political discourses circulating at the time of the interviews may have contributed to these views. The article also discusses the extent to which xenophobia in the Australian community has links with feelings of economic insecurity.