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Queensland renters facing the prospect of giving up groceries to keep a roof over their heads

Advocacy groups have labelled the state's housing situation as an "absolute crisis".

Stacey Paul thinks she will have to start skipping meals just to keep a roof over her and her son's head.

The rent for her Brisbane home — where she has lived for 10 years — will increase by $250 a week from June.

And despite the financial stress, she does not dare leave.

Finding another rental would be harder again amid a rental crisis riddled with tragic tales of families sleeping in cars and tents.

"With the market the way it is, there's no point trying to find another rental," Ms Paul said.

"They're all around the same price so I'll stay there and re-sign and try and make ends meet."

For Ms Paul, that looks like "probably skipping meals."

"Making sure my son can eat but for myself, not so much," she said.

Brisbane mother Stacey Paul says food is one of the only things she can cut back on to save money. (Supplied)

"I'm working full time, I've always worked full time and I thought I was on a decent salary but it's obviously not enough to keep up with the market.

"I think I may have $20 left each week at the end of my budget.

"The easiest flexibility when it comes to the money is cutting down your grocery bills … that's probably the only budget that I can vary."

Advocates say government measures do not go far enough

Tales like Ms Paul's have motivated the state government's latest rental laws, which limit rent increases to just once a year.

But advocates from the housing sector — including Tenants Queensland, Q Shelter and the Queensland Council of Social Service (QCOSS) — are calling for the government to also limit the amount that rent can be increased.

"We welcome the introduction of limits on the frequency of rent increases, however, we are concerned that it doesn't go far enough, and we are calling for the amount of increase as well," Tenants Queensland CEO Penny Carr said.

QCOSS CEO Aimee McVeigh said the group is hearing some "pretty serious stories" about hefty rental increases.

"We know that we simply don't have enough houses in this state and so of course when you've got a simple story of supply and demand, we are going to keep seeing the price of rent increasing unless we have some regulation in the market," she said.

She suggested a cap of "CPI plus 10 per cent".

Q Shelter Executive Director Fiona Caniglia said rent hikes were "pushing people towards homelessness", and further action was needed.

"We'll keep working towards a limit on the amount rents can be increased, because tenants simply can't pay," she said.

"It is pushing people towards homelessness, and the risk of homelessness, which is putting a lot of pressure on the system and more importantly pressure on households."

However, REIQ CEO Antonia Mercorella said the latest rental caps would "dent" investor confidence.

Antonia Mercorella says capping rental increases could drive investors out of Queensland. (Supplied: Antonia Mercorella)

"We're disappointed that government seems to default to legislative intervention, in particularly targeting private investors," she said.

"We know that it is private investors who are doing the majority of the lifting when it comes to housing Queenslanders."

Ms Mercorella said the government should, instead, be focused on increasing the state's housing supply.

"We understand the need for fair, balanced legislation. We know that protections in tenancy laws are essential," she said.

"But we've really got to be careful about not tipping the scales too far in favour of any party so that we can continue to ensure that we are keeping investors in the state."

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