AS RENTAL prices skyrocket and housing stock remains scarce, there are real fears for Lake Macquarie residents who struggle to keep a roof over their heads.
Housing affordability and availability could become a serious issue for the city, as Lake Macquarie City Council (LMCC) expects to see demand for 13,500 new homes between now and 2036.
Already there are people living under bridges, behind railway stations and in tents out in the bush because stable accommodation is out of reach, community charity Southlakes Incorporated chair Kerriann Dunn said.
"People are living rough at the moment because they can't afford rentals or there's hardly anything out there for them," she said.
"Prices have gone sky-high with rentals and people can't afford that with the Centrelink benefits they're on, that's making them homeless because most people can't afford it and they're getting kicked out of rentals."
Southlakes Incorporated looks after at least 60 clients experiencing homelessness in the Morriset and Toronto area alone - and Ms Dunn said it's part of a broader issue with a lack of affordable and social housing.
The city's population is expected to grow by 28,000 people in the next 15 years, the challenge for the council will be to keep up with demand.
The goal is to increase housing density in town centres where services already exist, LMCC chief executive Morven Cameron said, and areas like Cooranbong, Wyee and Glendale have been identified as areas for growth.
"On top of the areas that have already been rezoned, we're actively looking at how we can increase the density at our town centres," she said.
"That's through our housing strategy and engaging with builders to see if they can look at a new product or something that's different to the traditional Lake Macquarie product - which is that house and land package.
"There's still space for that and an absolute need for that but when we went out to the community and asked about housing choice they were very clear that many people who live here already and want to downsize want to stay in Lake Macquarie and downsize but they want a different product."
Property Council NSW executive director Luke Achterstraat said the government needs to step up and enable infrastructure that supports development in the Hunter amid a regional "crisis".
"It's about being brave and bold and looking at medium density options, local planning controls, facilitating appropriate and high quality medium density options to capitalise on existing infrastructure and looking to work with the state government where possible," he said.