Since University of Wollongong PhD student Muhammad Sarwar moved to Wollongong in February this year, his rent has already surged by 30 per cent in the space of only a few months.

"I've squeezed all my other expenses as much as I can just to manage," the 30-year-old said. "Being a PhD student it's very hard to find time for another source of income."

Muhammad has tried to find cheaper accommodation - but with minimal vacancies in an ever-competitive market - he's given up hope.

"I've been applying non-stop for the last three months," he said.

"I asked my friend who managed to get accommodation what his trick was ... he said he offered above the asking rent quoted by the real estate.

"You're constantly competing with people in a better financial position."

Read more: An artisan smokehouse has popped up at a Fairy Meadow fish shop

It's a similar story for 24-year-old Ernst Nel, whose rent in his previous Wollongong apartment surged by $50 in six months.

Unable to afford the increase amid stagnant wages, he was forced to uproot his life and find somewhere more affordable.

"They kept increasing (the rent) ... even though I'd been paying it every week on time. But my pay wasn't going up at all, it wasn't sustainable," he said.

"I think rent should only be able to be raised once a year at most. Doing it every three to six months is just a way to exploit people who want a permanent place to live."

New research from the Everybody's Home campaign has found Wollongong recorded the largest dollar increase in weekly rent compared to any other regional local government area in the state.

Read more: Shellharbour's Just Cuts founder hanging up clippers after 30 years

It found asking rents surged by $70 per week since November last year, now making the average weekly rent in Wollongong $561.80.

Campaign spokesperson Maiy Azize warned existing renters faced making tough decisions if rents continued to soar.

"It's been a shocking, challenging year for regional NSW tenants," she said.

"Having a roof over your head is choking household budgets ahead of what is already traditionally an expensive time of year.

"Sadly, many will likely rein in the festive celebrations simply because they can't afford it and don't want to risk becoming homeless."

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Illawarra Mercury website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.