More than 900 new social housing properties are needed in the south-west region just to cover the existing waiting list.
New figures obtained by South West Coast MP Roma Britnell reveal that as of the December quarter there were 911 applications on Housing Victoria's waiting list.
Over half of those applications (511) are on the priority housing list.
Priority access covers people who are homeless and receiving support, escaping family violence, need to move for health reasons or have a disability or significant support needs.
"Based on the December quarter figures we need a 50 per cent increase on current properties just to cover the waiting lists," Ms Britnell said.
There are 1868 existing social housing properties across the Local Government Areas of Warrnambool, Moyne, Glenelg, Southern Grampians and Corangamite.
Ms Britnell said 965 properties were in Warrnambool, making up 37 per cent of stock in the Wimmera South-West area - which covers from Horsham to the coast and across to Camperdown.
She said waiting lists were growing every day, especially as the private rental market dries up in the region.
"I would expect in the next lot of quarterly figures waiting lists will be even longer," she said.
"The region is facing a massive housing crisis and it's becoming the number one issue raised with me. I have at least one person contact me daily about housing issues."
Ms Britnell asked the Minister for Housing Martin Foley in February to outline how many new dwellings the Andrews Government's public housing build program would deliver in the south-west.
It took two months for a response, which Ms Britnell said didn't answer the specific question.
"I'm concerned that the government has committed so much money to a project but has no idea what it's actually going to deliver," she said.
"We have seen repeatedly the Andrews Government have massive cost blow outs on major projects and I want to see this money being used to deliver as many social housing properties as possible.
"The Andrews Government needs to get on with what they have promised and start building new social housing properties in Warrnambool and the south-west."
Mr Foley said on Tuesday that the state government was "deeply aware" of the demands for social housing, not only in Warrnambool and the South West Coast but throughout Victoria.
He said smaller households in the south-west's local government areas, particularly single person households, were forecast to be above the state average by the year 2036 and larger households, families with children and other group households, forecast to be below state averages.
"These forecasts and other demand and locational information will help inform the type and number of new housing to be provided in the Warrnambool area," he said.
"Homes Victoria is working with Warrnambool City Council to identify opportunities for social and affordable housing.
"In 2018, we funded the council through a Social Housing Investment Planning Grant to prepare a social housing plan for Warrnambool which has provided valuable information about the type of social and affordable housing needed in Warrnambool."
Mr Foley said that in November last year the government announced the $5.3 billion Big Housing Build stimulus program which he said is the "largest social and affordable housing investment Victoria has ever seen".
He said there was a minimum investment guarantee of $25 million in Warrnambool to build new social and affordable housing.
"Warrnambool has been targeted because it is well connected to services and jobs and is forecast to grow by around 22 per cent (3100 households) between 2016 and 2036," Mr Foley said.
"The number and type of homes to be built in Warrnambool will become known as the Big Housing Build progresses."
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