The development announced last year is underway to extend Thyne House, increasing the capacity to 50 beds.

Thyne House is a Youth2Independence facility, providing accommodation and support for young people to become independent through education and training.

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The new development will add an additional 20 self-contained, one bedroom units for men and women aged between 16 and 25.

The announcement comes during national Homelessness Week, with this years theme of 'Housing ends homelessness'.

Project manager Stephen Yan said that the facility allowed young people to successfully transition to private rentals through developing self-reliance.

Minister for State Development, Construction and Housing Michael Ferguson said that the Y2I model of Thyne House had proven results and "filled a critical gap" in Northern Tasmania.

"It's about providing this group of young people with what society owes them," he said.

"Which is not just accommodation but also an increasing sense of self-reliance that can only come from education and the chance at a rewarding job.

"It's not just about short-term accommodation but long-term social outcomes and employment and independence which is exactly what we want for all our young people."

Shelter Tas chief executive Pattie Chugg said that reducing and eliminating homelessness in Tasmania remains an urgent priority.

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"The 2016 Australian Census showed that on any given night in Tasmania over 1600 people were homeless," she said.

"This could mean staying on the couch or floor in someone else's home, sleeping on the streets, or struggling to get by in insecure, overcrowded or inappropriate accommodation."

The Thyne House expansion is due for completion in October next year.

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