Housing crisis worsens amid renewed public tower debate

The number of vulnerable Victorians waiting for public housing would not fit inside Marvel Stadium as pressures worsen a year on from the state government's pledge to solve the crisis.

A Housing Insecurity Index gauging the pressure people are under to secure a stable roof over their heads has found they face spiking rents, ballooning public waitlists and stagnating social living options while homeless services are at breaking point.

The index, produced by the Council to Homeless Persons, marks a year since Victoria unveiled its housing statement committing to building 800,000 homes in the next decade, as well as a raft of other measures to address the crisis.

Since then rents have skyrocketed by more than 13 per cent across the state, with median prices in Melbourne reaching $560 per week - a 14.6 per cent increase - while those in the regions have endured a 5.3 per cent increase to reach $445 per week.

The public housing waiting list is so high a sold-out Marvel Stadium in Melbourne, with 53,359 seats, wouldn't be big enough to accommodate everyone waiting for a home.

Between March and June, there were almost 3000 new requests for housing, with the total number 61,587.

Tenants living in the state's 44 public housing high rises have taken the government to court over plans to redevelop the towers by 2051, necessitating the relocation of more than 10,000 residents.

The government on Friday announced five public housing blocks in South Yarra and Richmond are the next to go, saying the towers are outdated and no longer fit for purpose.

But the Greens have slammed the plan that will result in fewer public homes.

"Any housing plan that starts with tearing down 7000 public homes in the middle of a housing crisis (is) a housing disaster," Greens housing spokeswoman Gabrielle de Vietri said.

Requests for homelessness services have remained above 10,000 every month since the start of 2023, leaving frontline workers considering quitting as workloads soar.

Victoria lags the rest of the nation in terms of social housing, accounting for only 2.8 per cent of its total housing stock, increasing by only 1771 in six years.

Victorian Public Tenants Association chief executive Katelyn Butterss urged the government to safeguard the state's social housing stock.

"These are highly valuable sites, and Victorians gain the most from them when government continues to hold them as an asset," Ms Butterss said.

The report recommended the government amend its housing statement, build at least 6000 public and community homes each year for a decade and pour more funds into homelessness services.

"The big housing build is a great initiative, but unfortunately the data tells us it's going to be nowhere near enough to end this housing emergency," chief executive Deborah Di Natale said.

The federal government has faced Greens and coalition opposition over their own housing share equity and build to rent measures.