Homelessness advocacy group Everybody's Home said an increase in rental prices was contributing the amount of youth homelessness in the South West.
Everybody's Home national spokesperson Kate Colvin said one of main reasons young people seek support from homelessness services was issues with housing or finance.
The group has reported a 14.2 per cent increase in rental prices in the South West over the last months.
"The rising cost of rental properties pushes stable housing further out of reach for young workers who are increasingly in housing stress," she said.
"The housing affordability crisis is even more dire for those on Youth Allowance.
"A person on Youth Allowance looking for a share house can afford less than 1 per cent of rentals."
Getting an accurate number of Busselton youth that are homeless is difficult, with the Department of Communities saying there was only one person on its waiting list, while the City of Busselton saying they are aware of 12 children consistently couch surfing or sleeping rough.
Department of Communities acting assistant director general of strategy and partnerships Glenn Mace said the department maintains a general and priority wait list for public housing.
"Applicants for public housing seeking priority assistance may identify homelessness as the primary reason for requesting priority listing," he said.
"At 31 March 2021 there were no priority-listed applicants under 18 in the Bunbury preference zone who had indicated homelessness as the primary reason for requesting priority listing; one applicant in the Busselton preference zone and one in the Margaret River preference zone.
Mr Mace said capturing accurate data of people experiencing homelessness was difficult due to the hidden and highly mobile nature of the homeless population.
"The shortage of rental properties in the South West of the State is the result of many factors, including the COVID 19 pandemic," he said.
"Young people who cannot secure housing can face challenges in relation to completing their education, finding employment, increased interaction with WA Police and the justice system, and dealing with issues related to mental health and alcohol and other drugs."
However, City of Busselton Mayor Grant Henley said the city had anecdotal evidence that youth homelessness had increased in the area.
"Not being the lead agency in this space, the city does not have hard statistics or information about the extent to which rising rental prices may be impacting on this situation," he said.
"We are concerned that the number of at-risk youth is increasing.
"For young people this can have a serious impact on their education and mental health.
"It leaves them in an emotionally and physically vulnerable position and can seriously limit their future opportunities."
Mr Henley said youth crisis accommodation was needed and it was something the city and Vasse MLA had been advocating for 'some time'.
Mr Mace said preventing homelessness was a priority for the WA government.
"Communities recently awarded the Housing First Support Services for the Bunbury Area to a Consortium led by Anglicare WA partnering with Doors Wide Open and Breakaway Aboriginal Corporation," he said.
"The service will see the delivery of tailored wrap around services to people sleeping rough, including young people aged 18-25, in order to connect them to the right services, including accommodation."
Homelessness support services
Mr Mace said there were a number of services available for people experiencing or at risk of homelessness.
"Entrypoint Perth is a free assessment and referral service assisting people who are homeless or at risk of homelessness in Western Australia to access accommodation and support options," he said.
"Communities also provides interest-free loans to help people obtain accommodation in the private rental market."
People can contact Entrypoint Perth on 1800 124 684.