The drop has come even after Bendigo saw a surge in the number of houses built and lots subdivided in the first half of the decade.

Renters on very low incomes are among the hardest hit but it has become increasingly difficult even for those on low and moderate incomes to find suitable homes in the 10 years to 2016.

Households of two moderate income earners and their chidren children have done well, with 2637 extra houses now theoretically available for them to rent over 10 years, council estimates show.

There are also more houses available for moderate income couples with no dependent children.

Yet the number of houses for nearly every other group classed moderate, low or very low earners has fallen.

Very low income families appear the hardest hit. The proportion of houses theoretically available to them fell 26 per cent by 2016..

It is a sign of just how hard it is getting for people to get affordable housing, the council said in a newly released background paper on the subject.

"Although there were more increases for homes to purchase than rental properties, couples with no dependents in the low and moderate ranges are finding it increasingly difficult to find affordable dwellings," it said.

Local governments have no set role in the affordable housing space but the council has noticed a public appetite for it taking a greater role, director of strategy and growth Bernie O'Sullivan said.

"Feedback from the background paper will inform the new affordable housing action plan for greater Bendigo, which will outline what the city's future role will be," he said.

Possible ideas include lobbying for changes to state planning controls, pushing developers to set aside affordable housing on larger developments, advocating for more public housing in Bendigo, gifting land to housing providers or establishing a housing trust.

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An extra 41,000 people are expected to move to Bendigo by 2036 and the council believes 18,838 new dwellings could accommodate them.

People on very low incomes will need to be able to rent or purchase 42 per cent of them, the council estimates.

Those on low incomes will need to be able to live in 25 per cent of them and those on moderate incomes will need 20 per cent.

Comments can be provided through a short survey at www.bendigo.vic.gov.au/affordablehousing

Interested community members can also attend an affordable housing workshop on Tuesday February 18, from 9.30am - 12.30pm. Catering will be provided so RSVP by Monday February 10 by visiting www.bendigo.vic.gov.au/affordablehousing