“The rental supply is simply inadequate, especially rental properties at the affordable end [of the market].”

People with large families, those with small children and young people on lower incomes faced the most difficulty securing a tenancy, she said.

“It’s very demoralising, it can be very depressing. If people already have health issues, mental health issues, or low self-esteem, not having somewhere to live can make it so much worse.”

State and Federal governments have invested $3 billion to deliver over 9000 social housing homes in NSW by June 2012, however Ms Clay said the benefits were yet to kick in.