Almost half of renters and two thirds of people with a mortgage in Ballarat are experiencing financial stress, new data reveals.
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Figures released on Monday by housing advocacy group Everybody's Home showed the dire state of housing stress, with coalface homelessness workers calling for more investment in social housing.
Housing stress is defined as when a household is spending more than one-third of its gross income on housing costs such as rent.
Everybody's Home's financial stress map shows 47.2 per cent of renters are in stress in the Ballarat electorate which covers Ballarat, Hepburn and Moorabool local government areas.
Every Australian deserves the security and stability of a home.
- Kate Colvin, Everybody's Home spokeswoman
There are a total of 67,148 households in the electorate, with 66.3 per cent of mortgagees in stress.
Ballarat's rates of stress are higher than Bendigo, which has 43.1 per cent of renters and 45.8 per cent of mortgagees in stress.
There are 61.3 per cent of renters and 56.7 per cent of mortgagees in stress in Corio, an electorate of Geelong.
Spokeswoman for Everybody's Home Kate Colvin said the nationwide figures highlighted the need for more social housing.
"There is no time to waste, we need an urgent commitment from the treasurer to invest in social housing in the upcoming federal budget. Millions of Australians are counting on it," she said.
"Investing in social housing is more than just providing everyone a place to call home. It will also provide our economy with a significant economic boost."
The financial stress map shows Melbourne's outer suburbs experience the highest rates of rental stress, with some electorates with as many as 60 per cent of renters in stress.
It comes as more than 150 organisations dealing with housing and homelessness have signed an open letter to Treasurer Josh Frydenberg, calling for a bigger investment in social housing.
"Every Australian deserves the security and stability of a home," the open letter says.
"But after a year of surging rents and house price growth, an increasing number of low and middle-income Australians face severe housing stress or the risk of homelessness."
The open letter says rents across the country have risen by more than nine per cent in the year to December 2021.
"By contrast wages grew on average only 2.2 per cent," the letter said.
"These rent rises are having a devastating impact on rental affordability."
Despite worsening rental affordability, federal funding for social housing continues to decline, according to Everybody's Home.
In 2013-14 federal funding for social and Indigenous housing was over $2 billion, but on current forecasts the Commonwealth will spend just $1.6 billion in 2023-24, the organisation says.
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Ms Colvin said housing affordability should remain a key priority for the government ahead of the budget on March 29, and the upcoming election.
"The upcoming federal budget represents a unique opportunity for Treasurer Josh Frydenberg which cannot be wasted," she said.
"Failure to deliver more social housing will further exacerbate what is already a developing social crisis."
A regional report released last week revealed housing affordability was holding back growth in western Victoria.
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The Regional Strengths and Infrastructure Gaps report revealed a 43 percent rise in requests for long-term housing assistance in the Central Highlands since 2015.
"The Grampians region is experiencing a shortfall of diverse, affordable and quality housing to accommodate its population," the report states.
"Housing prices in the region have risen substantially, further driven by an influx of demand from remote workers moving to regional Victoria during the COVID-19 pandemic.
"A mismatch between population demand and diversity of housing supply has led to limited options for affordable housing in the region."
- With Australian Associated Press