MSPs voted against declaring Scotland was experiencing a housing emergency.
Holyrood debated the housing situation where thousands of people are stuck in temporary accommodation and with rough sleeping on the increase in Glasgow.
The city is expecting to see an even bigger problem as the UK Government is about to accelerate decisions for asylum seekers, which will put people out of their Home Office-provided accommodation.
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The council warns it will leave more people registering as homeless.
Labour MSP Mark Griffin brought the debate to the Scottish Parliament calling for the Scottish Government to declare a housing emergency.
He said: “After a year of SNP turmoil and the Tory mortgage bombshell, this motion is long overdue.
“In the past year, homelessness has hit a record high, mortgages have soared, and under the SNP new home building has plummeted.
“Scots are being left with nowhere to turn while they give more and more of their paycheque just to have somewhere to live.
“Scots are crying out for support with this crisis, but nothing is being offered. The SNP must heed Labour’s call and declare a housing emergency across Scotland.”
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The call was defeated however by 63 votes to 51 as SNP and Green MSPs backed an amendment by Housing Minister Paul McLennan.
It stated it “Recognises that Scotland is facing significant pressures with homelessness and temporary accommodation”.
However, rather than declaring an emergency, it said it should “build on its track record of delivering 123,985 affordable homes since 2007 by delivering 110,000 affordable homes by 2032”.
He also said the Tories' mini-budget of 2022, left the housing market struggling against inflationary pressures and added Brexit had a “devastating impact" on construction costs and workforce challenges,
McLennan called on the “UK Government to immediately uprate Local Housing Allowance, end the spare room subsidy, more commonly known as the bedroom tax, and reverse the planned real-terms reduction to Scotland's capital budget."
After the vote, Griffin said: “This out-of-touch SNP-Green government is in complete denial about the housing emergency people across Scotland are struggling with.
“We need urgent action across the board to drive down rents, help people buy homes and afford mortgages, and boost housebuilding – but that starts with recognising the scale of the problem.”
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