Tightening rental markets have increased pressure on housing services, with Uniting Ballarat's frontline services reaching nearly double their budgeted capacity.
The housing and support services organisation's Warrick Davison said demand on their services had put pressure on the whole organisation, and demand was higher than ever.
"I've been here 15 years and I haven't seen demand like it before," he said.
"We've got over 160 households waiting to go through our transitional housing program at the minute.
"We operate as the key entry point to the homelessness system, so essentially we're seeing people, anyone who is going to access a housing or homelessness service."
Uniting Ballarat's clients have felt the strain of the long waiting lists, relying on more short-term services while living on the street.
Ashley and Jai Crockford were placed into a house by Uniting Ballarat shortly before Christmas after Ashley spent more than four years on the streets.
They applied unsuccessfully for 24 rental properties in three weeks, something which Mr Davison said was a common issue for low income families in the city.
"The demand in town is extremely high. You have families applying for 60, 70, 80 rental properties, and they just can't get that foot in the door," Mr Davison said.
Prison better than living on the streets
Ashley Crockford said many homeless people in Ballarat put themselves in jail to avoid spending winter on the streets, something which he considered before he found long-term housing.
"A lot of people, who I know, would prefer to go back to jail compared to spending another winter on the street in Ballarat," Mr Crockford said.
"I'd be in jail, I'm not going to lie. If I had have been on the street, I probably wouldn't have been able to do another winter.
"Trouble was, I had nothing for them to get me for, so I couldn't go back there."
Support services feeling the strain nationwide
John Mikelsons, Australian Council of Social Service senior adviser for community services and health, said community services across the country were experiencing budget cuts and funding freezes, as demand soared.
"What we've seen is billions of dollars cut from programs and services that all of us rely on," Mr Mikelsons said.
"These cuts have been occurring within the context of growth in demand for services, population growth, and increases in the cost of delivering services as well.
"The cost of delivering the service rises, and the funding doesn't. So community service organisations are forced to make tough decisions.
"They have to decide whether they're going to squeeze more out of their already stretched budget, cut hours of workers, or sometimes reduce services."
