While the Wangaratta district's neighbourhood houses were busy servicing and planning for their communities last week, they were represented by their regional coordinator at a Melbourne rally highlighting the need to increase state government funding for the sector.

Trish Curtis, Upper Murray Regional Neighbourhood House Network coordinator, was among a gathering on the steps of the Victorian Parliament, which attracted 200 sector staff, participants and supporters including Ovens Valley MP Tim McCurdy.

Neighbourhood Houses Victoria's analysis shows that additional funding of $11.7 million per year is needed to ensure the sustainability of the sector and continue delivering for Victorians.

The peak body is calling on the state government to urgently increase core funding for neighbourhood houses in the 2026-'27 Victorian budget by 25 per cent, to keep doors, programs and services open.

NHVic also calling on the state government to fund 25 currently unfunded neighbourhood houses, and commit to 20 new neighbourhood houses in Victoria's outer metro and regional growth areas.

Ms Curtis said last week's gathering attracted a great turnout, and helped make the issue a visible one.

"A lot of the work neighbourhood houses do happens behind the scenes, so that many people don't realise the impact they have," she said.

"Our postcard campaign, which has seen people expressing why their houses are important to them, has highlighted to the people with the money the role that these organisations play in the community.

"We have a meeting later this week to wrap up the events of last week, and to get feedback from Neighbourhood Houses Victoria about where we are sitting in terms of the state budget.

"We won't know for certain about that until May, but there were a number of politicians out watching the gathering last week, so that was a positive sign.

"Our 'Keep Our Doors Open' campaign will keep going until the preparation of the budget, so we can keep applying that bit of pressure and increase awareness of our needs."

NHVic says reduced funding has seen about 200 of the state's 400-plus houses run at a loss for the past two years or more, with many reducing services or at risk of closing completely.

However, information gathered by Neighbourhood Houses Victoria shows that more than 90 per cent of community members say their mental, physical and emotional wellbeing has improved as a result of participating in the neighbourhood house.

Eighty per cent said it had strengthened their sense of belonging, with neighbourhood houses providing vital social cohesion and community connection.