Families are accepting hefty rent increases in fear of being out on the streets, as another damning report sheds more light on Tasmania's housing crisis.

But it is not just Tasmanians living in the cities who are feeling the squeeze, with those in regional areas finding it unaffordable to rent in their hometowns.

A report by Corelogic has found that rent in south-east Tasmania has increased 47 per cent over the past 12 months, with Hobart the most expensive place to rent.

Hobart mother-of-two Laura Edrich did not need a report to tell her that.

"We just renewed our lease and the landlord suggested a $100 per week increase," Ms Edrich said.

"We felt that if we didn't take that price we wouldn't be able to find accommodation for us.

"We felt like we were in a rock and a hard place, but we managed to negotiate it down to $50 a week."

Ms Edrich said her situation shows just how vulnerable the community, including working families, has become when it comes to housing.

"At the end of the day we would have taken whatever hit because we couldn't risk being out on the streets," she said.

"We're coping, but we are anxious about our next rental increase.

"There's no certainty of whether we can find a place, it was difficult and stressful to find the place we're in so we just couldn't take that risk — we had to just cop it."

Regional rent hikes 'wiping out income'

It is not just inner-city Hobart facing rental stress.

Dodges Ferry resident Da Nelle Degrassi was hoping to be out of her caravan and into a house by winter.

A lack of affordable housing has led to some Hobart people pitching tents at the local showgrounds. ( ABC News: Ellen Coulter )

The mother-of-one moved into the van in her parents backyard four years ago in an effort to save up to buy her own home.

Soaring property prices put a stop to that.

"Over the last four years the prices in this area have gone way too high, there's no way I'd be able to purchase one now," she said.

"Now that I've been living in a caravan for four years I was really hoping I could move out of here before winter.

"The cost of rentals in this area has absolutely doubled, almost tripled, to what it was when I was renting four years ago."

Tears of frustration

Ms Degrassi grew up in Dodges Ferry and her daughter goes to school in the area, and she doesn't want to leave.

She said a two-bedroom house for her and her daughter could cost her up to $350 per week, which would wipe out her income.

City and regional residents are having to negotiate with landlords keen to up the rent. ( ABC News )

"I sat last night on realestate.com in tears to be honest, I thought 'I can't afford any of this and I just want to get out of the caravan'," she said.

She said share-housing was an option to save costs, but it came with complications for parents.

"It's not a fantastic option when you're a single parent and you have a child," she said.

"Share-housing and raising children with other people would be very difficult.

"I'm lucky that I can be in the caravan on my folks' property, I'm not in a position where I have to live in tent like some other people."

Martyn Evans, the Mayor of the Derwent Valley north of Hobart, said a shortage of rental properties in his region in recent months was driving up prices.

"With Airbnb you can't see [its] impact but what you can see is there is a shortage of rental properties within the New Norfolk and Derwent Valley region," he said.

"[There are] people going to look for rental properties … and finding there's a raft of people to compete against.

"New housing estates are moving along quite rapidly but I don't know whether they're keeping up with demand."