Last week we revealed the city's rental market was as tight as ever, with a vacancy rate of 1.2 per cent.

Today we revealed houses up for sale are being snapped up as quickly as they go on the market. Real Institute of Victoria data said in January properties were on the market for an average of 43 days compared to 64 for the same period in 2019.

With high demand and low supply, the median house price has jumped too and while that's good news for existing home owners, it's not for those looking to enter the market.

The reality is there's no simple fix. The crisis is a result of several failings.

The city council failed when it rejected an application for 74 apartments to be built in the city's burgeoning north-east in December despite the project meeting planning rules.

Warrnambool has enough land for housing but the bureaucratic red tape holding up developers, and the costs, are contributing to the existing problem. Changes to lending practices by banks are also hurting developers.

The state government's changes to tenancy laws, which were designed to give renters more rights, have delivered an unintended consequence - landlords are removing houses from the rental market and instead cashing in on the booming, unregulated Airbnb short-stay market.

This week we revealed home owners are pocketing as much, if not more, from short-stay deals than longer-term rental agreements.

One solution to this is to force home owners to register properties like bed and breakfasts as accommodation businesses. It's been done in Broome with some success.

The REIV is urging the government to delay the introduction of laws for renters with pets.

The state government, while investing in eight new public housing units by 2021-22, needs to do more. Demand for public housing in the south-west has been high for years and the waiting lists long. The shortage is only worsening. It's time for action.