Palmerston residents do not feel safe in their homes, the NT Government has acknowledged, as frustrated residents fear youth offenders are being "released like fish".

Key points: Palmerston has hosted a community meeting to discuss escalating crime rates in the area

Palmerston has hosted a community meeting to discuss escalating crime rates in the area Reoffending rates in the region have spiked over the past 12 months

Reoffending rates in the region have spiked over the past 12 months NT Government to relocate out-of-home care facility amid community opposition

Simmering tensions over youth crime in the regional town reached boiling point on Monday night, as more than 100 residents descended on a community forum to demand answers from politicians and police alike.

It follows a similar initiative in February last year, spurred on by community unrest over crime rates, where the NT Government flagged changes to bail laws and youth diversion programs.

But while promises of reform may have been well received initially, some 12 months on, residents say it is a case of "all talk, no action".

"All you do is think about it," one frustrated local heckled from the crowd, as the speakers sought to quell community concerns.

"What does youth diversion look like? A holiday," yelled another.

NT Police figures show that over the past year, general reoffending rates in Palmerston have increased across the board, with a noticeable spike in alcohol-related offences (43.1 per cent), house break-ins (30.8 per cent) and property damage (24.3 per cent).

They are figures similarly reflected through new offence statistics.

Frustrated residents demanded answers from politicians and police. ( ABC News: Bridget Judd )

"People are not feeling safe in their homes, people are frustrated and sick of rebuying stuff they've worked hard for," Palmerston Grassroots Action Group chairman Serena Dalton said.

"[Youth diversion] is not what the community wants."

As residents questioned the effectiveness of diversionary programs, the Minister for Territory Families Dale Wakefield hit back at criticisms.

"When we came to government, the judiciary didn't have enough tools to manage a range of situations," she said.

"The judiciary locked kids up or gave them community bail without much consequence for breaches."

Ms Wakefield pointed to new bail reforms announced last month, including 24/7 supervision within bail support accommodation, but said law and order measures needed to be balanced with initiatives to reengage youth offenders.

However, she acknowledged some residents did not feel safe in their homes, and said the NT Government still had "a long way to go" in tackling youth crime.

Should youth offenders be 'named and shamed'?

The NT Government told crowds tackling youth crime could not be achieved overnight. ( ABC News: Bridget Judd )

Amid calls from the crowd for a tougher stance on law and order, some residents questioned whether the intense focus around youth crime, particularly on social media, was tarring all children with the same brush.

"This is something young people have raised with me right around the Territory, that often they do feel targeted when they're walking down the street," Ms Wakefield said.

"One kid, who was the dux of his school, said he tends to stay in his school uniform, because if he's in civilian clothes, he's watched."

However, the independent MLA for Palmerston, Terry Mills, said identifying those committing crimes would help curb profiling concerns.

"Who are they? That's the problem with anonymity, it then extrapolates to all youth," he said.

"We need to find out who the heck they are, who their mums and dads are, who their uncles and aunts are, and get to know what's really going on.

"Then we can deal with this general problem where nobody knows anything and we're all suspicious of every kid."

Out-of-home care facility to be moved amid opposition

Compensation for victims of crime was a key concern among the crowd, with one resident relaying concerns his daughter had been left "thousands of dollars out of pocket" after her business was broken into four times.

"One night at 4:00am, when the police responded, they told me they were aware of who the offenders are [but] the system is letting us down," he told the crowd.

Ms Wakefield said it had been a frustration raised among frontline police, and reiterated concerns the courts had not been given the tools to "respond flexibly" to find the appropriate outcomes for both victims of crime and youth offenders.

Palmerston locals questioned the level of support for victims of crime. ( ABC News: Bridget Judd )

"We're doing that, we're working with the legal system to find how to give them better tools," she said.

"We need to empower frontline police so that they feel they are contributing to the solutions, rather than being frustrated, which has been a problem in the past."

Ms Wakefield also confirmed an out-of-home care site in Palmerston would be moved amid community concerns, with one audience member telling the crowd the "same kids in the same house" were doing "the same crap, night after night".

The facility is used to house children who have been removed from their families, and is located in the suburbs.

"I have spoken [to local politicians] about this particular house, and we have made a commitment to change that particular location because it isn't working," Ms Wakefield said.

"We've tried to come up with solutions around particular houses, and where there's not a resolution, we're more than happy to look at different options around moving kids."

Ms Wakefield said the NT Government was focused on ensuring children were placed with family or foster carers before out-of-home-care facilities, as per the recommendations of the Royal Commission into Youth Detention.