The changes to the Residential Tenancies Act have pushed up the cost of rent, according to Member for South West Coast Roma Britnell.
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She spoke about her concerns in parliament on Thursday.
"Rents have increased," Ms Britnell said.
"There is less rental stock available. Landlords are exiting the market in Victoria."
Ms Britnell has spoken about the shortage of affordable housing.
She is shocked Doug Bowen, who has two children, including eight-year-old daughter Nova who is in a wheelchair, has not been able to access social housing.
"I have highlighted the situation before of Doug Bowen in the parliament," Ms Britnell said.
"He is a single father with two children under the age of eight, one of whom is in a wheelchair with cerebral palsy.
"They have been on the waiting list for social housing for four years. I recently had a government department briefing which informed me that there is no available housing for Doug. They say nothing has been built in Warrnambool to suit their needs."
Ms Britnell said the average cost for a rental in Warrnambool was $500 a week.
"How can anyone afford that? And do not be fooled that the rent assistance and the other help would help long -erm - it would not," she said.
"It would not even put a dent in the budget challenge that the family would be in if they took a rental property."
Another family with a toddler contacted The Standard.
The couple, who asked not to be named, has another child on the way and have been unable to secure a rental for $300 to $350 a week.
"We have been waiting for 16 months now," the concerned parent said.
She said the couple was living with extended family, which was not ideal.
A map produced by Everybody's Home shows there are more than 3000 people waiting for social housing properties in the electorate of Wannon.
Everybody's Home spokeswoman Maiy Azize said building more social housing was among the key solutions to easing the housing crisis in regional Australia.
"Right across regional Australia we're seeing rents rise every year and more people become trapped in housing stress and homelessness. This isn't right and must stop being accepted as normal," Ms Azize said.
"A lack of affordable housing has flow-on effects for the liveability of regional areas. Long-time locals are being driven out of their communities. Essential workers are struggling to find a place to live.