Latest data from Homes Victoria revealed 1280 applications had been made on the Victorian Housing Register for public housing in Warrnambool as of June 30, 2022.

More than half the list, 789 people, were classed as requiring priority access due to fears for their health or safety, or because they were living in emergency, crisis or transitional accommodation.

The 2022 figure was up 125 applications from 1155 in June 2021 which had 707 people listed as priority access applicants.

But with 91 new social housing homes - some of them set aside for crisis accommodation - in the pipeline, more would need to be done to stem the growing crisis.

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Statewide, public housing waiting list numbers had ballooned from 51,830 in June 2021 to 55,043 in June this year.

But Victorian Public Tenants Association chief executive officer Katelyn Butterss says it's no surprise.

"What we've seen over the past number of years is a consistent and steady increase in the amount of people waiting for public housing and community housing," Ms Butterss said.

"The numbers continue to grow and people are waiting longer and longer to be housed - often in very precarious situations."

Ms Butterss said multiple factors had converged over the past few years to create a "perfect storm of housing need" but bloated waiting lists could be primarily attributed to the state's lack of investment in public housing.

"In Victoria, we have not been investing in growing our public housing stock," she said. "Combine that with the emergence of the gig economy and insecure work, wages that are not growing, inflation and the increased cost of living ... I don't think it's at all surprising."

She said the increasing number of people unable to rent privately due to rental price hikes may have also added to public housing waitlist numbers.

"It's become more difficult to rent in the private market than it was before," she said. "If you're already at the edge of your capability to rent in the private market, you're already in housing stress or rental stress, you can't sustain that increased rent."

Ms Butters said the only clear solution was for governments to commit funding for public housing to at least meet demand but stressed this was "not a quick fix".

"We need more public housing for people to move into but you can't build a sturdy, well-designed, energy efficient, safe, secure and affordable home for someone overnight," she said.

She said wait-list growth would continue to overwhelm supply unless investment like Victoria's Big Housing Build project became ongoing.

"We need to look at what happens after the government finishes delivering on the Big Housing Build which is due to wrap up in the next couple of years," she said. "It can't be a one and done situation. We need to keep building properties to have any hope of catching up to demand."

Salvation Army Warrnambool team leader Brett Allchin said he had seen the impact long public housing waiting lists were having.

"Increased numbers of clients (are) in insecure accommodation, couch surfing, relying on motels and caravan parks," he said. "(There's been) increased visible rough sleeping in the Warrnambool area."

Mr Allchin said lack of public housing supply in Warrnambool and the south-west had severe knock-on effects for those needing emergency accommodation.

"We have (some) clients who have been staying in our properties up to three years due to a lack of affordable housing available for them to move into," he said. "This is concerning (for) people presenting to our services fleeing family violence as they most often have nowhere safe to go to. (It) reduces our resources to respond to the current needs presented."

One of the biggest social housing projects in the pipeline is $19 million worth of units which will be built by the Salvation Army. They include 21 units behind its new chapel and mission centre on Mortlake Road. The Salvos will also demolish 13 properties across Warrnambool the city council gifted them and turn them into 25 new units.

All up under the government's Big Build project, $29.5 million is going to the Salvation Army, Centacare Housing Service and Women's Housing Limited, some of which have already been completed.

The projects came after Warrnambool council's 2020 Social Housing Planning Project outlined the city would require 2812 public housing dwellings - about four times its current amount - by 2036 to keep up with projected population growth.

A joint project between Grampians Community Health and Family Safety Victoria has also been announced to assess and map south-west motels being used to alleviate crisis housing shortages.

The Family Safety Victoria Motels Coordination Project Wimmera South West project plans to offer its recommendations to mend service gaps and improve crisis accommodation outcomes by June 2023.

Project facilitator Malcolm Hill said a lot of the region's emergency accommodation options had dried up when pandemic restrictions eased which allowed for increased tourism.

"Post-COVID-19, a lot of people are exploring Victoria and it's common to hear that over summer, motels will not be available so they can cater for tourists," he said.

"Major employers are also said to be competing for motel rooms because they know they are going to need them for workers."

Mr Hill said the project would focus on motels and services housing victim survivors of family violence.

"We will consult crisis services and accommodation providers about their experiences and review what they can do and how they contribute more," he said.

A Homes Victoria spokesperson said the Department of Families, Fairness and Housing would continue to work with Warrnambool and south-west councils to build more affordable and social housing to meet demand.

"To date, $37 million has been invested in Warrnambool to build 105 new homes under the Big Housing Build and other social housing programs," he said. "We know there is a need ... which is why we are getting on with delivering more homes."

He said $1.25 billion had been committed to regional Victoria for the four-year public housing project with more than $86 million pledged to the south-west.

"The Big Housing Build is investing an unprecedented $1.25 billion in regional Victoria," he said. "This includes a minimum investment guarantee of $25 million in Warrnambool - which has already been exceeded - to provide the dignity of a home to those who need it most, where they need it."

On top of that, a combined $61 million is being invested across Ararat, Corangamite, Glenelg, Moyne, and Southern Grampians local government areas to deliver 184 new homes.

If you or someone you know is impacted by sexual assault, family or domestic violence, call 1800RESPECT on 1800 737 732 or visit www.1800RESPECT.org.au. In an emergency, call 000.

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