Almost half of renters and two-thirds of people with a mortgage in Ballarat are experiencing financial stress, figures reveal.

Single-parent and Ballarat resident Roxanne Mcphan told The Courier she had about $120 remaining in her bank account to live on each week after her rent and bills were taken out of her disability payment.

"I'm just managing to put a roof over my children's head and food on the table, taking in consideration that food and fuel has just gone up as well," she said.

"I'm in a private rental and it's killing me where I'm living."

Ms Mcphan said she had a mental health breakdown because of her financial situation. She said more affordable private rental costs would improve her ability to live and care for her children.

"There are that many families living in their car because of the prices of rentals," Ms Mcphan said.

Another resident, who asked to remain anonymous, said her rent was $415 a week and she had to decide whether to pay more than $100 of fuel a week to travel to and from school or purchase food for the family.

"My mental health has plummeted since the price has gone up and my depression is unbearable at the moment," she said.

The woman said she was terrified about being homeless, hungry or experiencing worsening mental health.

"I am currently four months pregnant and looking for a job to help with the cost of everything," she said.

"Last week I had to choose whether to feed my kids and family or be able to drive my son to school. His education had to be put last as I couldn't afford both."

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.

There are a total of 67,148 households in the electorate.

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Of those, 66.3 per cent of mortgagees are 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.

A Ballarat resident, who asked to remain anonymous, said he had experienced homelessness after moving to Ballarat and being knocked back on more than 50 rental applications.

"Many houses were already rented and you would turn up to open inspection and they had already leased the property, taking time off work to do so," he said.

The man said he lived in an industrial shed while working for a year.

"Many people rent out industrial sheds and live there in secret here because it's easier to be accepted and given a lease," he said.

"After a year of living in a cold shed, I finally got a house and then for sale signs went up a month after I signed a 12-month lease and I was asked to end my lease early because they were developing it."

The man said he found another rental at the beginning of the pandemic after months of struggles, costing $580 per fortnight out of his $777 JobSeeker payment.

"That leaves me with $105 per week for food, electricity, gas water, cats I had before all this went south," he said.

"I have no internet for study and borrowed money for rego, fuel or maintenance. Licence is up for renewal next month and it might not be possible to sort out a way to pay it.

"I am borrowing a SIM card off my friend because I can't afford phone credit. There is no money for clothes or unexpected expenses, so anything that crops up is stressful.

"I use battery lights in all the rooms, never the heater. I shower every second day to save water.. because I am living in the negative and have to borrow off friends sometimes."

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.

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.

The Regional Strengths and Infrastructure Gaps report revealed a 43 per cent 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."

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