Young people are being encouraged to letterbox city homes in a bid to find a place to live.
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Brophy Family and Youth Services senior practitioner Mark Dekker said there were dozens of young people in the south-west who were faced with the prospect of homelessness.
"We're seeing - particularly with young people - there are barriers in entry," Mr Dekker said.
He said young people were being knocked back when applying for houses because of a lack of rental history.
"How do they get the opportunity first and foremost to actually build a rental history and demonstrate that they are capable (of being a reliable tenant)?
"We're suggesting to our young folk to letter drop and see if they can hit the heartstrings of people in the streets they might want to live in," Mr Dekker said.
He said community members who had a spare room should consider opening their homes to young people who had nowhere to live.
"That's what it comes down to," Mr Dekker said.
"It's going to come down to each and every one of us potentially opening up our spare bedrooms and the like."
Mr Dekker was speaking at a forum at Warrnambool's Civic Green on Thursday to mark Homelessness Week.
He also read out an account from a young Portland woman who recently experienced homelessness.
"Hey everyone, I'm writing this letter to tell you a bit about myself and how my partner and I got through the difficult times we were facing not that long ago," the woman wrote.
"Both my partner and I growing up had it rough," she said.
The woman said her partner grew up in foster care and she grew up in a "toxic" home.
The woman said she and her partner worked extremely hard to obtain full-time work, obtain licences and buy their own cars.
However, they were forced to live in their cars for sometime because they were unable to secure a rental.
For a period of time, the couple live with family, but when that was no longer an option they were faced with again sleeping in their cars.
"My partner and I truly hit rock bottom," she wrote.
"We had officially become homeless - we were officially at the point where we couldn't take it any longer."
The woman said the two were extremely grateful their Brophy support worker was able to secure them accommodation for six weeks at a caravan park.
However, they had no idea where they would live when that six weeks was up.
The woman said she and her partner were elated to get a call to say they had finally secured a rental.
"If there is any advice I could give to young people in the same situation as my partner and I - I know you've probably heard it 1000 times, but don't give up," she wrote.
"I know things may seem tough right now but you've got to stay strong and keep pushing.
"As cliche as it sounds, there is light at the end of the tunnel."
Mr Dekker said the young woman's story was common because there was a lack of affordable housing in the south-west.
Barry Clarke, who works with people facing the prospect of homelessness for the Salvation Army, said there had been more than 500 people across the region seeking support in the past 12 months.
"Over half of those were new people who have never presented to our service before," Mr Clarke said.
"It's just a sign of what's been happening.
"It's also a sign that there is still a large amount of people who aren't getting a solution over many years."
A Warrnambool woman who attended the event said she was struggling to keep up with the rising cost of living.
The woman, who did not want to be named, said she had been homeless in the past and slept rough.
Now she is struggling to pay her bills and frequently attends free community meals in the city due to the rising cost of food.
"There was a time when all I could afford to buy was baked beans," she said.
The woman said she slept rough on freezing cold nights and often didn't know where her next meal was coming from.
Emma House intake and risk team leader Sarah Brittain said almost 3000 people sought support from the service in the past financial year.
"Our numbers are quite stark and they will be quite shocking, but of the 2873 people that accessed our service in the last financial year, 87 per cent of them were experiencing homelessness as well as family violence," Ms Brittain said.
She said the service had limited options for emergency accommodation.
"Emma House obviously has some safe housing options, but we only have like four," Ms Brittain said,
"It's not a big number."
Ms Brittain said the lack of emergency housing meant some people had to make tough decisions.
"We might be able to put someone in accommodation for six weeks or 12 weeks, but there are no exit points," she said.
Barwon South West Homelessness Network coordinator Rebecca Callahan said the region's lack of affordable housing had hit crisis point.
She said the state government needed to take more action to address the issue.
Ms Callahan said there were examples of ways to address the issue of homelessness in other states.
In NSW, there is a limit of the number of days a property can be offered as short-stay accommodation.
"There's legislation that was introduced last year to say the properties can be only advertised as short-term stays for 180 days of each year," Ms Callahan said.
One council affected by floods reduced that number to 90 days each year.
"That meant within four weeks there were a hundred more properties that became available for people to be able to rent in the private market," she said.
South Australia has also introduced legislation that mandates "inclusionary zoning".
That means all new developments must include affordable housing options.
Ms Callahan said greater investment from state and federal governments was needed to address the homelessness crisis across Australia.
A state government spokeswoman said it was aware of the high demand for housing.
"We know there is demand for social and affordable housing across the state, which is why we are investing in the landmark $5.3 billion Big Housing Build - the single largest investment of its kind by any state or territory government," the spokeswoman said.
"More than $30 million has already been invested in Warrnambool, with 95 homes in the local government area either under way or recently completed.
"We are also providing $8.32 million for homelessness programs in the Wimmera South West region, which includes Warrnambool, in 2022-23.
"This will fund eight service providers to offer support including crisis accommodation, brokerage funding, assessment and planning for people experiencing homelessness to access required services and housing pathways, youth housing services, transitional housing, and support for families at risk of homelessness."
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