The West Australian town of Margaret River is world famous for its wine and surf, but the town is grappling with the aftermath of trauma, homelessness and the perception of a growing divide between the haves and have-nots.

Key points: Margaret River residents say despite town's image, gap between wealth and poor widening

Margaret River residents say despite town's image, gap between wealth and poor widening New report depicts a town heavily influenced by trauma, including the Osmington shootings

New report depicts a town heavily influenced by trauma, including the Osmington shootings Crisis workers say inadequate services, seasonal work adding to rate of homelessness

The Centre for Rural and Remote Mental Health, at the University of Newcastle, has released the draft results of its study into the mental health of the Augusta-Margaret River Shire.

After interviewing more than 150 stakeholders, authors noted the pall cast by tragedies over the years, including the Osmington shootings, the 2011 bushfires, and the Gracetown cliff collapse, as well as the widespread perception of stark economic disparity.

"This perceived divide was characterised by unemployment or underemployment, mortgage or financial stress in some sectors compared to other groups in the community who were socially and economically advantaged," the report said.

The region was found to have higher suicide than the national average, an increase in domestic violence, and concerns over homelessness and underemployment.

The report was commissioned by the Val Lishman Institute, a local health organisation, after the community expressed concern about the state of mental health in the town.

Chief Executive Di Ritson said while there had long been anecdotes of the 'underbelly' of Margaret River, this draft report was a bid to go beyond just talk.

"We wanted to provide evidence," Ms Ritson said.

When even a tent is too expensive

Shelley* never thought it would come to this.

Divorced and raising her children by herself, she found herself homeless after the owner of a house she was renting was unable to pay the mortgage.

With even the cheapest rent upwards of $300 a week and public housing hard to get, she found herself with few options.

Margaret River housing officer Katie Gray talks to 'Shelley', who is facing homelessness in Margaret River. ( ABC South West: Georgia Loney )

Local housing group Just Home Margaret River put out an urgent call for a tent, to house Shelley and two children, but with workers flooding into town for the wine vintage even that was out of her pay range.

"Tents are too expensive unless you get out bush," Shelley said.

"I don't think the kids would have been too happy with a tent … that would have been in a caravan park, and that would have been about $500 a week."

Now, until a solution can be found, her children are living with relatives and Shelley is staying in her car, moving it from night to night if she feels unsafe.

"It's a bit daunting, but you just push on with it," she said.

"Well I do, you have to."

Victims of success

Katie Gray, a housing officer with Just Home Margaret River, estimated there were up to 30 people sleeping in their cars in the shire on any given night.

Many more, she said, were couch-surfing, or living in unstable or unsuitable housing.

Ms Gray said domestic violence is a constant issue, but the nearest refuge was 45 minutes away.

Ms Gray said Margaret River's affluent image has made it difficult to convince people that there is a need for more services.

"I think there's a public perception that Margaret River is wealthy," Ms Gray said.

"But I think the higher earners at the top are swaying the number, which doesn't represent the lower earners.

"I think a serious investment in community and public housing, and for Centrelink payments to go up, that would be a key issue."

Airbnb putting 'pressure on the food chain'

Like Shelley, Vince Wilkins is sleeping in his car.

A battle with depression and a marriage breakdown left him struggling to work, but he has found support through being an active member of Just Home Margaret River.

Like Shelley, Margaret River man Vince Wilkins sleeps in his car. ( ABC South West: Georgia Loney )

Mr Wilkins is well aware of the debate over the impact of sites like Airbnb are having on availability of housing, and said it does have an indirect affect on vulnerable members of the community.

The Centre for Rural and Remote Mental Health report found a high proportion of vacant houses — 29 per cent of dwellings unoccupied — and noted concerns about the high number of holiday homes.

Mr Wilkins said it is not a straight-forward issue.

"It has nothing to do with my plight, but it doesn't make it any easier," he said.

"Housing-wise, there isn't enough.

"The biggest pressure is seasonal, but there is massive pressure from Airbnb, but it makes it difficult for those at the bottom of the food chain — ie me."

He says while there is a need for more social housing, there is a reluctance among some to push for more, as it is at odds with the town's glossy image.

"No-one is talking about the homeless in Margaret River, because it's not in the interest of the region to even admit there's an issue."

Trauma and resilience

The Centre for Rural and Remote Mental Health said despite the ongoing impact of significant trauma such as last year's Osmington shootings, and the 2011 bushfires which destroyed more than 40 homes, the community has demonstrated "considerable resilience".

The town also has high rates of volunteering, with more than 220 community groups.

Dave Seegar, has helped run the soup kitchen in Margaret River for more than 20 years offering top-notch food for $5 for those who can afford it, and at no cost for those who cannot.

Dave Seegar is the co-ordinator of the Margaret River soup kitchen. ( Supplied: Margaret River Community Centre )

He said it is not just locals struggling to find shelter, but seasonal workers as well, with backpackers struggling to make ends meet on grape picking pay.

"I'm not going to turn them away," he said.

Shire President Pam Townshend said the council is yet to form its official response to the report, and is working with a local taskforce to tackle the issues raised.

But she refuted any suggestion the shire was ignoring mental health issues, and said the shire had a strong commitment to social justice.

"It's the same problem with all shires," Ms Townshend said.