Mandy Booker, manager of the Wollongong Homeless Hub said they'd had a 42 per cent increase in demand for their services compared to the same time last year.

"We're terrified to see what that would look like in another six months' time," she said of the future impact of COVID-19 on these figures.

Read more: New figures show the level of homelessness and social housing shortages across regional NSW, including Wollongong

During Homelessness Week (August 2 to 8), Labor has renewed calls for the Morrison Government to fund the construction of more social housing, and repair existing social housing.

Cunningham MP Sharon Bird and Whitlam MP Stephen Jones visited the Homeless Hub on Thursday to discuss the need for greater funding for social housing.

The MPs said Homelessness Week is a reminder that there are more Australians experiencing homelessness than ever before, and the current economic crisis could force many more into crisis accommodation.

"We know that even from the pre-COVID pandemic era that homelessness is a persistent problem that we need to give full effort to in this country," Ms Bird said.

"It's even more obviously a significant situation, given that we're saying to people, 'as much as you can, stay at home'. You have to have a home to be able to stay at home."

Ms Bird said the construction of more social housing would also provide work for thousands of tradies.

During Homelessness Week, Homelessness Australia and Everybody's Home are calling on all federal MPs to sign a social housing pledge, committing to investment in social housing.

Ms Bird and Mr Jones signed it on Thursday.

Minister for Housing and Assistant Treasurer Michael Sukkar said although the delivery and construction of social housing is a responsibility of state and territory governments, the Morrison Government is making "significant, ongoing investments into social housing".

"In just two years, the Morrison Government's National Housing Finance and Investment Corporation (NHFIC) has issued nearly $1.2 billion in bonds through NFHIC's Affordable Bond Aggregator," he said.

"The issuance of these bonds has supported the delivery of more than 1700 new and 5400 existing homes built and maintained by community housing providers.

"Every year the federal government provides more than $6 billion in Commonwealth Rent Assistance and support to the states and territories to deliver social housing through the National Housing and Homelessness Agreement."

Also on Thursday, Shellharbour Mayor Marianne Saliba visited Southern Youth and Family Services (SYFS) at Warilla, meeting with CEO Narelle Clay and staff.

The community-based organisation provides support and assistance to vulnerable, disadvantaged and homeless young people and those at risk of, disadvantage and homelessness.

Cr Saliba said COVID-19 has put Australia's "lack of affordable and social housing in the spotlight, with more people pushed to the edge of, or into homelessness".

At the 2016 Census, there were 183 people in the Shellharbour LGA who were homeless.

This number increased from 134 in 2011.

Earlier this week, the state government announced $204,184 funding for Southern Youth and Family Services to install a state-of-the-art recording studio.

The funding will enable the recording studio to be assembled in the new recreational facility to be built at the SYFS Youth Hub in Warilla.

Ms Clay told the Mercury that SYFS' other upcoming projects also included plans to build 20 units, comprised of subsidised one and two-bedroom accommodation for disadvantaged young people and young families.

Ms Clay said the proposed complex would be located near their Warilla headquarters, but still required funding.

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