Warrnambool and Hamilton will each receive five-bed facilities as part of a joint state and federal government program intended to provide long-term respite for older carers.

The two group homes, to be built by the Department of Human Services (DHS), are together valued at $2.35 million and are expected to open by mid-2011.

Warrnambool's will be run by Southern Way Direct Care Service, which presently offers 11 fully supported places, one three-bedroom semi-independent unit and a respite facility with four beds.

Chief executive Graham Kemp said Australia's ageing population was contributing to long waiting lists for both short-term respite and full-time care.

"It's probably impacting more in Warrnambool because we've got people moving to Warrnambool," he said.

"Demand greatly exceeds supply so we're really pleased that it has gone ahead."

Mr Kemp said the unit, to be built in a central city location, would include a staff bed so 24-hour support could be provided.

Hamilton's group home will be operated by Stay Residential Services, which currently manages 14 full-time beds and a six-person respite facility.

"The new house will probably be completed early next year, we hope," the organisation's chief executive Maree Sandford said.

"(It's aiming to help) older carers who are caring for adults with a disability in their own home - it's a great boost for them and it's a great opportunity for Hamilton, basically, because it will have really positive outcomes for the older carers and for the Hamilton community."

Ms Sandford expected strong competition for places in the facility, adding that applicants' eligibility would be assessed by Geelong-based DHS staff.

"There's always going to be a need. As long as I've been in this position there's been a need, and there will continue to be a need - it's ongoing," she said.

"I would say that the need is growing; it continues to increase, just like population continues to increase."