And the situation is even worse in the private rental market, where 40 per cent of local households are now experiencing housing stress.

Australians For Affordable Housing (AAH), a new coalition of more than 60 housing and community organisations, commissioned the University of Canberra’s National Centre for Social and Economic Modelling to conduct a study looking at the levels of housing stress across the nation.

AAH defines housing stress as applying to residents who pay more than 30 per cent of their income on housing costs.

Campaign manager Sarah Toovey said the problem was worse for low income families ($600 a week or less in Bathurst) where high housing costs meant there was not much left over for “basics like food, clothing and transport, and also those irregular costs like birthdays and Christmas”.

“These figures are pretty startling but the problem has been going on for a long time,” Ms Toovey said.

“It has especially been a problem over the past decade or so when housing prices have really streaked ahead of incomes and rental prices have tended to follow house prices.”

The AAH figures show that 17 per cent of Bathurst residents are experiencing housing stress. AAH also found that 18 per cent of residents who were buying their own home were experiencing mortgage stress and a staggering 40 per cent of renters were experiencing private rental stress.

Ms Toovey said these figures were reflected across most of the country.

“It’s a bit counter-intuitive because people tend to think it’s more expensive to buy your own house but if you are in the private rental market then you have very few options, so when rents go up you just have to grin and bear it,” she said.

“Housing stress has become worse over the past decade as housing costs have streaked ahead of incomes and rental costs tend to follow housing costs. And it is definitely becoming much more of a problem in the regions, especially areas with good employment prospects like Bathurst.

“As people flee the cities in search of affordable housing it puts more pressure on the regional markets.”

Single income households were the most at risk of housing stress.

“That might be single income families, single parent families or single people living alone,” Ms Toovey said.

AAH formed to lobby state and federal governments to ease the pressure on struggling households.

It is pushing for more investment in public housing, higher rates of rent assistance and the winding back of negative gearing incentives for investors to make it easier for first-time buyers to enter the market.

“There are a range of social and community services to help people get their finances in order, but this is really a political problem and needs a political solution,” Ms Toovey said.

“We would urge people to go to our website at HousingStressed.org.au and join the campaign for change.”