A SOCIAL housing provider says the city needs to disband impoverished areas in favour of mixed communities.
Most social housing accommodation is distributed across the suburbs of Ashmont, Mount Austin, Tolland and Kooringal.
Ashmont had 272 households that were renting social housing at the time of the 2016 census, whereas suburbs such as Estella, Springvale and Forest Hill had less than five.
Argyle Housing chief executive Wendy Middleton said establishing estates made of predominately social housing is an unsuccessful approach and mixed communities are the way forward.
"The mistakes of the past is where they built social housing in suburbs. It doesn't work," she said. "There is a stigma and a label (that comes with social housing) and that's here in Wagga."
As the city looks to accelerate its growth in the next 19 years, Ms Middleton said there is the opportunity to re-imagine how social housing fits in to the community.
Although the majority of households can be found within certain suburbs, Ms Middleton said they have deliberately started placing social housing in newer estates such as Bourkelands.
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As of the latest census data, the Bourkelands-Tatton suburb had 12 households considered to be social housing.
"The idea for us is that people feel a part of a community and they are no different, no matter what their income is or what their social stance is in that community," Ms Middleton said.
"If we put all our energy into home ownership and making sure we have beautiful suburbs out there for people to buy into we are actually not looking at a total package.
"(Our future housing estates) need to be mixed developments and there are opportunities to redefine Wagga's inner rings."
Ms Middleton said the concept of social housing has a stigma attached, which could be altered by establishing mixed communities. She said the idea that a low income worker cannot live in a newly developed estate or closer to services is the wrong mindset.
"Social housing as we knew it ... as people on low income (has changed). Now public housing is for people who have the most complex needs and need the most support," she said.
"It has shifted and people have to deal with that paradigm shift."
Ms Middleton said the social housing provider has in excess of 100 private rentals, in addition to its own and state government stock. But, it still struggled to meet current and future demand.
"We struggle to find homes that are up to standard or in our price range. With community housing there's a perception that it doesn't matter because it's only those people, but no we want the same standard," she said.