Colin Parry fears he will be left without a home in August.
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He is one of 14 residents at Catalina Caravan Park in Port Fairy.
The park will close in August, with the business owner saying he has been forced to walk away due to a lack of profit since the COVID-19 pandemic.
Mr Parry has lived at the park for a year at a cost of $500 a fortnight.
"There's nowhere for us to go," he said.
Mr Parry said he had an application in for a house in Port Fairy.
However, he will be forced to pay $400 a week.
"It will be a big jump but it will be better than being out on the street."
Mr Parry said the park residents were all desperately seeking affordable housing in the area.
"We're all in the same boat - there's nowhere for us to go," he said.
"This is the only caravan park in the whole area that will take permanents."
Mr Parry, who is a member of the Stolen Generation, said he had been on the public housing waiting list for 32 years. He said he believed the state and federal governments need to do more to help people obtain affordable housing. "The government should come in and buy this place," Mr Parry said.
Catalina Caravan Park and Takeaway owner Lloyd Phelan told The Standard on Wednesday he was left with no choice but to close.
Mr Phelan and his wife Janet, who took over the caravan park 12 years ago, are leaving Port Fairy and hope to secure jobs.
"The business - since COVID - it hasn't come back," Mr Phelan said.
"You can't keep going when you're not making any money."
Mr Phelan said he was bitterly disappointed he had to walk away from the business.
"We're just walking away," he said. "We're not even trying to sell it."
Mr Phelan said the COVID-19 pandemic had created a "perfect storm".
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