Closer ties between young people and real estate agents are being hailed as a critical step in tackling homelessness in regional New South Wales.

A subsidy scheme for young homeless people has been recently expanded to Bathurst, Orange, Wagga Wagga, the Central Coast and the Blue Mountains after being piloted in the state's Hunter region.

The Youth Private Rental Subsidy enables homeless people aged between 16 and 24 to pay a discounted rental rate and enter a lease arrangement with a real estate agent.

The Nationals Member for Bathurst Paul Toole said young people in NSW were "facing a serious problem" and that those at risk of homelessness were now able to access the private rental market.

The Department of Family and Community Services (FACS) said the uptake since the recent rollout had exceeded expectations and that effective partnerships with private real estate agents were critical to the scheme's success.

Encouraging progress in Bathurst and Orange

In the state's central west, FACS figures showed 11 young people in Bathurst and Orange have already found homes under the subsidy and a further four eligible people are now looking for properties.

FACS director of housing services, Jenny Rolfe, said the central west was an ideal region to focus efforts to tackle homelessness.

"Bathurst and Orange were selected as somewhere that we felt the program could achieve outcomes quickly because of the affordability in the private rental market," Ms Rolfe said.

Ms Rolfe said there had been a strong response in the region to the scheme, and that engagement with local real estate agents was a critical factor.

"Our rate of progress is much greater than the Hunter trial, partly because it was a trial and they were writing a program as they were experiencing it," she said.

Bathurst has shown a sharp uptake rate in the youth rental subsidy. ( ABC Central West: Gavin Coote )

"We've put a lot of effort into engaging the real estates who are quite positive about the program.

"If the real estates aren't willing to enter into a lease agreement with young people then there is no program."

Bathurst-based crisis accommodation service Veritas House said there had been a strong response locally between support agencies and young people looking to secure a tenancy.

General manager Jody Pearce said family breakdowns and domestic violence were among the key factors behind youth homelessness in regional areas.

"We've got waiting lists of kids trying to access that program so it's pretty positive," Ms Pearce said.

"For kids who are homeless and have gone through the youth refuges and are doing well, they need other options, so the youth private rental subsidy scheme is an option that can get them into that market."

FACS considers expanding scheme in western NSW

Ms Pearce said the subsidy's eligibility needed to be extended to meet the sharp demand.

"There's a certain number of subsidies allocated to Bathurst and Orange, so we would be encouraging more private rental subsidies for young people in the areas because we know the demand's there," Ms Pearce said.

"The uptake's been high, so we're thinking in a couple of months we're going to need more allocations for young people trying to enter the program."

Ms Rolfe said FACS would consider expanding the program to other parts of western New South Wales after the strong uptake in the existing areas.

"The timeline is unknown at this stage, but absolutely we'll be looking at expanding it," she said.

"It's a program that's delivering results, it's supporting one of our most vulnerable client groups, and it's providing a platform for that vulnerable group to become independent."