Modular homes seen as partial solution to public housing crisis in the regions

The Victorian government is sending 114 modular or relocatable homes to mostly country areas because of public housing shortfalls.

The government says construction problems have impacted its building programs.

Public housing shortages are a problem right around Australia and have been exacerbated by the flood of city people to the country which has help soak up available rentals.

Regional Australia's population has grown by 76,500 people each year over the past decade.

Victoria is spending $30.38 million to build one, two and three-bedroom modular homes, which are either in construction, being assembled on site, ready to move in or already tenanted across Victoria.

They are to house people who are experiencing or at risk of homelessness.

They are to be located on government-owned land in regional areas including Warrnambool, Horsham, Glenelg, East Gippsland, Swan Hill, Mildura and the Colac Otways.

But comments on social media show already existing homeowners in country areas fear being stuck with an unsightly neighbouring building which could impact their property values.

They also worry the public tenants will "stand out in a crowd" because of the difference in housing.

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The government says the homes will be built to modern residential standards, include landscaping and a frontage "that is sympathetic to the neighbourhood".

The government said the modular homes can be built quickly and are easily transported.

All properties include energy efficient appliances, solar panels, heat pump, hot water services.

The modular home scheme is extra to a $5.3 billion building program across the state aiming to build more than 12,000 new social and affordable homes - including $1.25 billion for regional areas.

Housing Minister Richard Wynne said the modular homes are addressing a need to provide housing for those who need it.

"These homes will provide hope, dignity and stability for people living here so they feel part of a community and get ahead and thrive."

Western Victoria MLC Gayle Tierney said: "It can be hard to provide services to regional areas sometimes and these modular homes are a great compromise of local and non-local businesses to work together to create housing where it is needed."