The imminent demolition of burnt-out properties across the city could exacerbate already long social housing waiting lists.
Development applications have been lodged with Wagga City Council to demolish three properties in Ashmont and one in Tolland.
NSW Land and Housing has contracted Bullivant and Associates to bulldoze two Ashmont properties on Fernleigh Road, which were set alight within one week of each other, another on Adams Street and a property located on Davies Place, Tolland, at an estimated cost of $65,000 each.
According to the NSW Department of Family and Community Services spokesperson, the properties cannot be saved.
"The three properties in Ashmont where fires occurred earlier this year have been inspected and made safe and contractors have undertaken a thorough assessment to determine the full extent of the damage," the spokesperson said.
"Unfortunately with the damage being so extensive, all three will need to be demolished.
"Arrangements are currently underway with contractors for this work to be done, including liaison with Work Safe NSW and local government."
According to the FACS website, the average waiting times for social housing in Wagga is between two to five years for a one-bedroom home and up to two years for both a two-bedroom and three-bedroom home.
On the NSW housing register there are 48,337 applicants, with 318 people in Wagga waiting to be housed.
"FACS regrets the loss of these dwellings as a result of the fires, given the much needed demand for social housing in the Wagga region," the spokesperson said.
However, former public housing tenant Christine Norton said she does not understand why homes are sitting vacant when there is a huge waiting list.
"I handed over my keys in November and the house was clean and the garden was green and tidied; the house was liveable and I had been there for five years," Ms Norton said.
"But, the home has been empty for four months and it has been left to rot and the garden is dead.
"It doesn't make sense when there is a long waiting list and people crying out for houses."
Ms Norton, who now lives with a friend in Ashmont, said these vacant homes are "prime targets" for vandalism and crime.
"It doesn't surprise me at all that empty public housing homes are targeted," she said.
The resident said house fires are damaging the community and forcing some to try and sell their homes.
"Just yesterday, I noticed two more homes for sale because crime is driving people out of the suburb, people want to get out and not live here," she said.
"It's bringing down the whole neighbourhood."