New research from the NSW Council of Social Service (NCOSS) and NATSEM at the University of Canberra shows western areas of Wagga have just over 20 per cent of residents living below the poverty line.

South Wagga was the next highest at 13.7 per cent, joining the city's western suburbs in sitting above the NSW average of 13.3 per cent.

Anglicare child and family services coordinator in Wagga, Jasmine Woodland, said report reflected the affordable housing crisis in Wagga and that more people in the city were seeking assistance from community services.

"It's concerning and it just highlights that our government needs to look at the fact that in regional areas we are limited in public transport, housing and employment opportunities, which is only going to make things worse," she said.

"Payments like Newstart and Youth Allowance aren't really meeting the basic standards so we often have to give people food parcels so they can get through the week."

Jobs were a major influence on poverty rates in Wagga, with between 40 and 65 per cent of those living below the poverty line across the city also being unemployed.

"It's not that people aren't trying ... I had a client who is a woman in her 50s who has been looking for employment for some time," she said.

"She finally got a job - three days a week - but it was better than nothing. She was based in Ashmont but that doesn't mean she hasn't been trying."

Ms Woodland said people should avoid making assumptions or prejudging people based on the NCOSS report and where they live.

"Obviously, western areas of Wagga have the higher amount of Housing NSW (public housing), so that makes sense that the rates are going to be higher there," she said.

"But I think it's important not to discriminate based on the area, as people don't always have a choice where they live. Affordability, and the fact that we have a housing crisis makes it very hard on families."

NCOSS chief executive Joanna Quilty said the research painted a sobering picture of the reality for too many people in NSW.

"What this research shows is that there is not one community in NSW that is unaffected by economic disadvantage, but there certainly are communities that are more affected," she said.

Ms Quilty called for more support for those struggling with cost of living pressures and "remove the structural barriers that work to entrench this disadvantage".