But housing experts say limited private rentals and the cost of living is putting more and more people in housing stress and on the streets.

Yesterday Victorian Housing Minister Wendy Lovell officially opened a $2.8 million development that has seen 11 two-bedroom homes built in southern Wangaratta for the less affluent.

“I’m delighted to open these new properties today, which will provide much needed affordable homes for local people,” Ms Lovell said.

“This is quality housing.

“It meets high standards for design and environmental sustainability, meaning real savings for the tenants through lower utility bills.”

As well as the energy efficiency rating the Thomas Wedge Drive homes also contain energy saving appliances, gas boosted solar hot water and a 2100-litre water tank, plumbed to the toilets to supplement mains water.

The houses, completed in December, are owned and managed by the not-for-profit housing association, Rural Housing Network, based in Wodonga.

Its acting chief executive Celia Adams said demand was still outstripping supply.

Its policy limits rent to 30 per cent of household income.

“This is a great outcome and the direct result of a partnership between government, ourselves and Southern Vale Homes,” she said.

“But the reality is we could build 20 more and fill them tomorrow.

“It is impossible to assess the demand for these homes on the basis of the public housing waiting lists or our waiting lists.

“Many of these people have been homeless or simply unable to afford private rentals.”

Ms Lovell said the Rural Housing Network housing was part of the armoury in tackling what she says is a housing crisis.

“Not enough homes have been built and that has forced up private rentals and reduced vacancy rates, the overflow putting further pressure on public housing,” she said.