Recent data from housing advocacy group Everybody's Home found Launceston renters on single parent support were spending 71 per cent of their income on rent, while hospitality workers were spending 59 per cent.

The data - based on rental data and income profiles - found prices in Launceston over the past 12 months had risen between nine and 19 per cent.

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Tenants' Union of Tasmania principal solicitor Ben Bartl said the rise was being driven by renters relocating from the South, increasing mainland investment in the property market and landlords transitioning to short-stay accommodation.

"There are thousands of properties throughout Tasmania, about 10 per cent, that have been removed from long-term tenants and replaced as short-term accommodation," he said.

He said while the short-term accommodation market required regulation to lessen its impact on the rental market, more social housing and regulation on the rental market was required.

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State Development, Construction and Housing Minister Michael Ferguson previously said the government would build 3500 new dwellings by selling and demolishing current social housing assets.

He said the government predicted 50 houses will be sold per annum over the next two years and expected the total net increase of social housing by 2027 will be 3628 dwellings.

Mr Bartl said the additional dwellings would lessen the pressure, but more needed to be done.

"We know the government has promised to build 3500 new houses by 2027, but 2027 is a long way away and the number of people who need a house is rising," he said. "In 2027 when those 3500 new properties are available, there's still going to be more demand for social housing."

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Greens party leader Cassy O'Connor said the Greens had previously moved to institute rent controls, mirroring the ACT model to address poverty and homelessness driven by rising rents. She said the legislation presented to the Lower House in March was voted down by Labor and the Liberals.

Ms O'Connor said similar legislation - the Residential Tenancy (Rental Market Reform) Amendment Bill 2021 - was tabled in June, but was yet to be debated.

She said the proposed bill would implement the same model for rent increases used in the ACT, placing the focus on renters and their right to secure an affordable home.

Mr Bartl said the housing crisis could force more people into unsustainable living arrangements and increase the risk of homelessness.

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