Victoria's peak homelessness body has endorsed the State Government leasing more properties to provide additional social housing in the areas of greatest need.
Homes Victoria, which oversees public housing, has been leasing properties directly from builders, according to a report in the Herald-Sun.
Council to Homeless Persons (CHP) has welcomed the move, which will help more people experiencing homelessness into safe and secure accommodation.
Victoria's public housing waiting list is now at 61,587, while the proportion of social housing in the state's total housing stock is just 2.8% - the lowest in Australia
Council to Homeless Persons Acting Chief Executive Officer Tom Johnson said the government should be pulling every lever possible to increase social housing stock.
"This action will add to Victoria's social housing stock at a time when the state is facing its most profound housing crisis in living memory," he said.
"Victoria has the lowest proportion of social housing in Australia, so anything the State Government can do to arrest that statistic must be enthusiastically welcomed.
"Renting properties and providing them to people experiencing homelessness at affordable prices is real action to support Victorians at the forefront of this crisis.
"Alongside this, the government should commit to building at least 6000 public and community dwellings each year for a decade.
"An overwhelming majority of Victorians want more action on this crisis and this move does exactly that."