The number of people living in severely crowded housing has jumped a massive 31 per cent despite ambitious Gillard government initiatives to combat homelessness and improve indigenous housing.

Figures drawn for the first time from ABS census data reveal that almost 18,000 of the 41,370 people living in severely crowded accommodation are born overseas - either immigrants or visa holders.

Almost 18,000 of the 41,370 people living in severely crowded homes were born overseas. Credit:Justin McManus

A further 21,000 are Aboriginal and Torres Strait Islander people living in remote areas of the Northern Territory, Queensland and Western Australia. The average number of indigenous people in a dwelling is 12.

New ABS analysis, compiled from 2011 census data redefined through the Canadian national occupancy standard, defines severe crowding as where four or more extra bedrooms are required to accommodate people in acceptable conditions.