In the past two months, 89 young Bunbury people have reported difficulty in having a place to sleep according to headspace.
Bunbury headspace community engagement officer Kelly Woods said she was genuinely surprised by how many young people within Bunbury were having issues with accommodation.
"It just goes to show that the issue is so much bigger than what we think," she said.
"I know in our community we've had young trans-people that have been kicked out of home due to being trans-gender and their parents not accepting that.
"A big issue for our young people that are in crisis is they don't know where to go and a lot of our not-for-profits don't have the money to advertise where they are so a lot of it is word-of-mouth."
Of the 89 youth who reported difficulty with accommodation, 16 were already couch surfing or in crisis accommodation and one was sleeping rough.
Ms Woods said she believed a youth precinct in Bunbury would help as it would provide young people with a place to go.
"A youth precinct would be invaluable in Bunbury because it would give our young people who are homeless a place to go during the day and then we could have all the information there for them," she said.
Accordwest housing and homelessness team leader Sydwell Madziva said some of the leading causes of youth homelessness included mental health due to trauma, drugs and alcohol, family violence and unemployment.
"The situation is getting worse, over the years the population in the South-West has grown significantly but the services have largely remained the same due to funding constraints," he said.
"We get requests for support from Harvey through to Margaret River.
"We see between 130 and 140 young people every year seeking support with accommodation - either they are homeless or they are at risk of being homeless across the South-West."
Bunyap, a youth crisis accommodation centre in Bunbury is run by Accordwest and can house six young people at a time. It currently has a waiting list of four with 33 individuals seeking support through the program in the last year.
Mr Madziva said two more houses in Bunbury were urgently needed.
For more information visit headspace.org.au or accordwest.com.au.