Imagine reaching 55, having never owned a home. It's a situation a lot of single women find themselves in.

Rhonda Stewart lives off a pension and has rented for most of her adult life, but rising rental prices left her struggling to afford to live in Werribee South, in Melbourne's traditionally modest western suburbs.

"I was paying about 70 per cent of my income, which was a pension, on rent," she said.

"On top of that, the house was entirely electric. There was no gas at all and the electricity bills were horrendous. I was just not making ends meet.

"I was eating into my savings. I was panicking."

The Women's Property Initiatives (WPI), a community housing organisation, said single women over 55 were the most marginalised when it came to finding affordable housing in Victoria.

Chief executive Jeanette Large said even those who had managed to save a small nest egg were still at risk of homelessness later in life.

"Many of the women that fit into this category have a nest egg of $100,000-plus," Ms Large said.

"If they are on the pension, to survive in the private rental market, they need to be accessing their nest egg constantly to be able to survive."

The WPI has developed an innovative housing option aimed at older single women who have no viable option of home ownership.

Similar to a shared equity scheme, the pilot program would allow women with about $100,000–$300,000 to invest in a small unit, and pay low rent while they live there.

The rest of the funding would come from philanthropic funds and commercial borrowings.

While the demographic might not be considered "those of greatest need", the prospect of a safe, secure, quality affordable housing option in later life could be the difference between ageing well and ageing under considerable physical and mental stress.

Pat Mitchell, 71, is interested in the pilot scheme. She rented for 40 years before buying a half share in a modest home in Belmont, near Geelong.

Pat Mitchell lives in Geelong now but worries what might happen as her mobility decreases. ( ABC News: Sarah Farnsworth )

"[It's worth] currently $130,000 to $140,000. It's not worth a lot," Ms Mitchell said.

She said she will need to move closer to services as she gets older and can no longer drive.

"What would happen if my circumstances changed and I had to leave? Where would I go?" she said.

"I wouldn't have enough money to get anything, anywhere."

The WPI will pilot the scheme with four women.

"The women would be allowed to sell when they need, as there may be a time when they get older and need to go into a nursing home," Ms Large said.

"We are very much hoping that once it's piloted and shown to be a successful model that it will be considered by government to be taken up and rolled out on a much larger scale."

As Melbourne's population booms, the ABC is putting the spotlight on the city's housing game. For more, tune into ABC Radio Melbourne and watch ABC News Victoria tonight at 7:00pm.