The Wodonga rental market is tightening and the demand for housing is "exceptional" since COVID-19, the client services manager says.

The global pandemic has "brought a whole other lens" to the homelessness landscape.

"The over-arching numbers of people at risk or who identify as homeless are higher compared to last year," Ms Fell says.

"We are seeing higher presentations of older single adults (who don't have parenting payments to support their income) and women who may have fled from domestic violence or separated for other reasons.

"The level of isolation brought about by COVID-19 has increased the risk of domestic violence."

Premier Daniels Andrews' $5.3 billion housing announcement has "huge" ramifications for services across the state.

On Wednesday Junction Support Services learned Wodonga and Wangaratta had been ear-marked for $20 million each from that package.

Ms Fells said the flow-on effect of more social housing was the ability of support providers to be able to assist more at-risk people.

"We are currently holding people in case management services for extended periods of time because the housing options are just not available," she explained.

"This announcement is a massive step forward for the community."

Across the river YES Unlimited's CEO Di Glover says the organisation is bracing itself for a major increase in the number of people experiencing housing stress.

She echoes the disappointment of NSW Homelessness CEO Katherine McKernan in the NSW government's "missed opportunity" to invest in addressing homelessness and job creation in its 2020 Budget.

"It's interesting because the NSW Government was invested in ensuring people sleeping rough (during COVID-19) were given accommodation but now that's easing off, we are seeing those presentations again," Ms Glover explained.

"We also saw the increase in JobSeeker allowance made a difference to people being able to put food on the table and even pay off debt.

"People told us how they were now able to shop at the IGA instead of going to food relief agencies."

"We have long advocated for an increase to the basic Newstart allowance as it is so far below the poverty line."

NSW's peak homelessness body has lamented the state government's failure to "significantly invest" in the construction of more social housing in its 2020 Budget.

Services were "stretched at the seams" before COVID-19 and economic modelling shows up to 9000 new people will experience homelessness in NSW by June 2021, according to NSW Homelessness.

CEO Katherine McKernan said the Budget "failed to invest anywhere near what is required for new social housing to end homelessness in dire economic times" with 780 new properties funded for the next 4 years.

This is in stark contrast to Victoria's $5.3 billion investment with the delivery of 9300 additional social housing properties.

Ms McKernan said NSW had a crisis prior to COVID-19, with homelessness increasing by 37 per cent between 2011-2016 compared to the national increase of 14 per cent.

Services are already seeing increased demand, helping single mothers, families and young people who had been affected by unexpected job loss and the continuing costs of the rental market.

"Services have worked tirelessly in 2020 to support more than 22,000 people at risk of or experiencing homelessness to stay well during COVID-19 by being accommodated in hotels, including over 3500 people who were sleeping rough," she said.

Ms McKernan said the sector welcomed confirmation of funding for the already over-stretched Specialist Homelessness Services Program and additional investment in the Together Home Program over the next two years, which will mean 800 people sleeping rough will receive housing and support for this period

However she added that people sleeping rough represented only seven per cent of all people experiencing homelessness.

In the Budget lead-up, Homelessness NSW outlined 5000 new properties per year for the 10 years would not only assist in providing critical housing but create 18,000 jobs.