The number of families and individuals taken off the state housing register and placed into permanent homes fell about 20 percent in the last quarter.
More than 1300 people moved off the list in the three months to March, down from more than 1600 in the previous two quarters.
The Housing and Urban Development report said that's partly because fewer people ended their tenancies compared to the end of last year.
The wait list for houses grew by three percent this quarter, and twice as many applicants are now waiting as there were two years ago.
Housing Minister Phil Twyford said the government was committed to addressing the issue, and it would take a concerted effort over many years to end homelessness.
He said the government was well on track to make 6400 new public housing places available over the next four years.
About 1700 extra places have been made available over the last year.