Moyne Shire Council will look at ways to address the housing shortage in Mortlake.
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Mayor Mick Wolfe said there were a number of businesses looking to attract new staff to the shire.
However, the lack of housing options was creating a barrier.
"We're trying to attract more workers to the area because there is a jobs surplus," Cr Wolfe said. "We need more workers but one of the critical elements in a decision to move to the area is available housing."
Cr Wolfe said wind farms being built in the shire and the livestock exchange at Mortlake had seen a huge surge in demand for rentals in the town.
In addition to that, there were plenty of jobs on offer in the agriculture sector.
"If people can't get a reasonable house at a reasonable price they won't move here," Cr Wolfe said.
He said the shortage had resulted in a rise in rent, which was a deterrent to people considering relocating.
Cr Wolfe said the shire would look at how it could address the issue.
Wilsons property manager Juanita Russell confirmed there was a high demand for rentals in Mortlake.
"We work with several different wind farm companies who are still looking for additional properties," Miss Russell said. "In addition to that we also have residential tenants who are finding it difficult to find a long-term rental there.
"We also find that because there are also less properties around Warrnambool people are looking further afield," Miss Russell said.
"There's certainly a demand for rentals at the moment."
Miss Russell said it would be a good time for property owners in Mortlake to consider renting out their home.
The Standard has reported recently about a rental shortage gripping the south-west, with some people applying for dozens of properties without success.
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