Children from struggling families are merely "existing", says the Salvation Army.
Last year community ministries helped 68,320 children under the age of 17 fulfil basic needs such as food and clothing - concerns becoming more prevalent in regions such as Hawke's Bay, the organisation said.
It released a major report this week showing that most North Island provincial regions still have lower incomes and higher youth unemployment than before the global financial crisis hit in 2008.
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After three years of steady demand, the need for Salvation Army social services is on the rise again, head of community ministries Major Pam Waugh said.
It's driven by problems in provincial New Zealand such as a lack of affordable, quality housing and jobs, she said.
"We are noting in places like Hawke's Bay there are housing issues. It's so expensive people are doubling up and living together because of unemployment.
Homes which are safe, warm and dry were hard to come by but essential for children and their families.
"There are long-term effects on children who don't understand, these children are living at an existence level, their chances to develop and grow and flourish are limited. It's about getting those families what they need so they can manage through tough times," she said.
Napier City councillor Maxine Boag agreed there was a need not being met in Hawke's Bay.
"I think definitely there aren't as many state houses about since they changed the criteria and landlords, quite understandably are more careful who they get in," she said.
"People can't get accommodation for various reasons, they might have come out of jail or they have a bad credit rating, I think there's also a lack of quality housing."
She said it was clear there was no set explantation as to why people were living in inadequate circumstances.
As a last resort people ended up temporarily living in their car or more commonly, "couch surfing" Napier Salvation Army Major Alister Irwin said.
Though it was not common for people to sleep in a vehicle it did happen here, but mostly for short periods of a week or less.
"There are stories of single men living in their car for a month at a time, but there are other agencies that can give them short-gap accommodation - Housing NZ or WINZ generally become aware pretty quickly."
There were also more complex repercussions such as an increase in domestic violence as families come under financial pressures.
"They say a rising tide lifts all boats, but if you don't have a boat, you face the risk of drowning."
The Salvation Army has its Red Shield fundraising campaign running this week - with funds to be directed at an emerging group of clients in the provinces.