Based on the existing literature, this paper provides an overview of social housing in Australia and reviews how it is financed in Australia and in selected countries and the involvement of institutional investors in it. The review identifies the challenges facing the financing of social housing and pinpoints the need for financial innovation. The paper finds that there is a severe shortage of social housing in Australia. The existing financing models in Australia are unable to provide the resources to address this shortage. The financing models adopted by other countries such as Austria can serve as possible models to consider. There is a need for institutional investors to get involved; however, it is important that social housing be shown to be attractive in terms of returns. There is a necessity to clearly evaluate the risks and returns of social housing and to develop innovative financial instruments and models in order to develop the missing or incomplete financial market for social housing in Australia.