New figures show the number of homeless households forced to live in temporary accommodation across the North West's more than doubled in just six years.
The National Audit Office (NAO) also accused the Government of not doing enough to tackle the crisis.
The NAO said the main cause of homelessness was now the ending of private sector tenancies.
Rents have gone up at the same time as household incomes from benefits have been cut, it said.
MP for Wigan Lisa Nandy said
"The rise in rough sleeping has been quite dramatic in recent years and it's also very visible"
"A combination of huge cuts to services whether it's council services, social care, mental health services or housing has come together to create a perfect storm"
The government says it's tackling the problem with a 550 million pound investment.