The building activity is set to be a boon for the region, but a serious question looms: where will the workers live?

With the Eurobodalla already facing a housing crisis, and hundreds more construction workers expected to arrive next year, council is raising its concerns with the state government.

Eurobodalla Shire Council resolved this week to lobby state MPs on the issue, asking them to commit to building housing for workers on the state-funded hospital and bypass projects, because there is simply not enough accommodation available in the shire.

Towns up and down the South Coast are desperate for more rental properties, and those searching for a home are facing sky high prices for what little stock is available. The situation isn't much better for buyers, who are also contending with affordability challenges.

Across the shire, 12 per cent of households are experiencing housing stress. This is more than other regional areas and the rest of New South Wales.

Zero in on the major centres of Moruya, Batemans Bay and Narooma, the figure jumps to over 20 per cent experiencing housing stress.

Council will write to a raft of ministers, including Premier Dominic Perrottet, minister for homes Anthony Roberts, and minister for regional NSW Paul Toole, asking them to prioritise the housing issue.

The request is backed by recommendations from the state government's own Regional Housing Taskforce, which says it [NSW Government] should implement mechanisms to address housing demand associated with state significant developments in the early stages of a project.

In speaking to the motion, Councillor Rob Pollock said advocacy from council is only the first step.

From here, he hoped the state government could take lessons from another major construction with links to the Eurobodalla.

"Clearly the level of action being proposed or endorsed by both federal and state governments is inadequate in terms of the immediate problems, which will be exacerbated by the construction staff requirements," he said.

"If we look at the opportunity that it does present to take a different approach.

"It does go back to the historic situation in Moruya when the Sydney Harbour Bridge was being built, and the quarry was being established on the Moruya River, they built Garlandtown to house the workers.

"If you look back in history, you can learn.

"There is an opportunity here to create a solution for the short term problem, but more importantly, a real social and economic opportunity to alleviate some of the problems that are clearly staring everyone in the face today."