Council members decided immediate action was required to address the region's housing issues at an Economic Development and Infrastructure Committee meeting on Thursday.
It has been revealed that the number of people on Argyll and Bute's housing waiting list has increased by eight per cent in a year to 3,290.
There are also 253 households in the region who are classified as homeless, with the council also referencing the impact of other national housing issues on the area.
These include a reduction in available housing, a steady increase in demand, rising property prices and a decrease in housing affordability.
Argyll and Bute Council says this has had a direct impact on Argyll property prices, with private rental levels rising at a substantial rate, housing availability decreasing despite the social rent build programme, and local wages unable to keep up with inflation.
On Thursday it was agreed that the council should update the local housing strategy, host a housing summit later this year and continue to develop an officer housing group.
Council leader Councillor Robin Currie said: “We have already identified housing as a priority and we have been working hard to deliver a variety of initiatives to address the issue.
"For example, we extended our award-winning empty homes team to bring more disused properties back in to use, phase 3 of Dunbeg is reaching completion, and community housing groups are delivering their own housing developments in various places."
Councillor Currie added: “Whilst these are all positive steps, we need to do more.
"For example, we have very little to no say in the private housing market, both those for sale and rent, and unpredictable changes in the private rental market have resulted in a reduction of available housing to let for permanent residents.
“This is just one of the issues that we need to examine in more detail to see how we can address the situation in partnership with other stakeholders, including those in the private sector, community groups, registered social landlords and the Scottish Government.
“There is no quick fix, but by declaring a housing emergency it will help us to raise the issue at local and national level and help focus our resources.”
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