WBAS are seeing more people forced to live in bad situations due to necessity.
"We've seen couples staying in relationships that want to split but it's too expensive, there's overcrowding in houses, kids going back to Mum and Dad, and even grandparents going back to their kids," Fage said.
"When we talk to them it all comes down to not being able to find a rental that they can afford."
She said they had seen a change in the people coming to see WBAS since the start of the year.
"Six months ago around 10 per cent of our clients were middle-income earners, and the rest were low-income earners.
"Now, that's risen to 30 per cent for middle-income earners," she said.
"Times are tougher so people have to cut back - but that's the easier part.
"We're seeing more people who have done that, but are still struggling."
Fage said when mortgage interest rates were low, life was much easier for many.
"Interest rates aren't what they used to be, and people are paying a heck of a lot in rent, so much so that often cutting back on discretionary spending isn't enough."
She said it was all the little increases in every area of living costs that added up.
"We could all suck it up short-term but long-term, that's when you start getting health and wellness problems."
Whanganui Budgeting Advisory Service is seeing more people being forced to live in bad situations due to rent costs. Photo / Bevan Conley
She said for most of their clients, discretionary spending had never been an option because they were living from one benefit payment to the next.
"Whanganui Budget Advisory Service is free. It's not just us, there are many great budget advisers and they're free.
"It can be devastating being stuck in a rut and having no one to talk to and see no way out. That's where we say 'look, come in, have a chat and we can look at options, ideally before it gets really dire'."
Meanwhile, prices of the construction of new dwellings have increased by 18 per cent in the June 2022 quarter compared to the same period last year.
Devon Homes owner Bernard Reuters said anybody who wanted to build and could afford to, needed to do so as soon as possible.
"If people wanted to build a $1 million house last year, they should now plan to be spending $1.2 million on the same house," Reuters said.
He said other factors of increased expenses included compliance issues costs and new legislation on building specifications, including the requirement for all foundations to be engineered.
"And it'll only get more expensive."
He said this was because of supply and demand - and if there was too much demand, it would cost more to get the job done.
"In a very busy year around 30,000 building consents are issued across New Zealand," Reuters said.
"But in the last year that number has jumped to 40,000, and no factory in New Zealand can keep up with that increase in demand."
There was a shortage of labour and materials and so prices had gone up, he said.
"There's your inflation.
"Possibly one day building costs are going to get so expensive most people won't be able to afford to build."
He said they were seeing the demand for construction slowing down because of the high prices, but it would take a while to filter through.
"Most builders are flat-out for the next six to 12 months. The good builders anyway."
Whanganui & Partners chief executive Hannah Middleton said the latest figures wouldn't have surprised Whanganui businesses, and many would be hopeful inflation had now peaked.
"The majority of business owners we talk to are absorbing the impact and retaining the ability to maintain their margins. Of course, they need customer demand to remain strong."
Hannah Middleton said the latest figures wouldn't have surprised Whanganui businesses. Photo / Bevan Conley
Middleton said start-up businesses may not have developed strong relationships with suppliers yet and were having to operate with a greater degree of financial risk than they may have done in prior years.
"Established businesses with strong planning and relationships, alongside a solid cash flow are better-placed," she said.
"They have dealt with the other impacts Covid-19 has thrown at them and this is just the next challenge."
She said current staff shortages across the country were a significantly limiting factor in this space.
"We know many business owners are finding themselves having to fill in for workers just to keep things moving, limiting their ability to focus on how the business is performing as a whole."
