VIC Government target 2.5 million new homes by 2051: Which regions will benefit the most
Victoria's state government has outlined draft housing targets to address the growing demand for housing across the region, setting a goal of constructing 2.5 million new homes by 2051.
These targets are part of Plan Victoria, a new strategy set to supersede the 2017 Plan Melbourne.
The announcement comes amidst broader national housing challenges, particularly in Victoria, which has the largest annual population growth of all Australian states.
Plan Victoria emphasises local government involvement to unlock space for new homes, propose changes to local planning rules, and address infrastructure needs.
"We want to work in partnership with councils to build more homes in the areas where people want to live – close to the people they love and the things they love to do," Planning Minister Sonya Kilkenny said.
Premier Jacinta Allan said “To give industry the confidence they need to get on and build, we need Government and all councils working towards the same goal: more homes for Victorians – in the right places.”
Victoria's Housing Statement includes an ambitious plan to build 800,000 homes over the next decade in an Affordability Partnership with industry.
The plan includes reforming Victoria’s planning system to boost housing supply across the state, clearing the backlog, and providing builders, buyers, and renovators with certainty about approval times.
Additionally, it aims to close loopholes that drive up the cost of living for renters, providing more certainty over leases, living standards, and finances, and resolving tenancy disputes more quickly.
The government is also committed to building more social and affordable homes across Victoria, launching Australia’s biggest urban renewal project on top of the Big Housing Build.
As part of the effort to meet the target by 2051, a regional target has been set to build 425,600 of these homes across Victoria’s regions.
Key areas such as Melbourne's Central Business District (CBD), outer suburbs, and the regional city of Geelong will play pivotal roles in meeting these goals.
Geelong, Victoria's second-largest city, has been set the highest target with 139,800 new homes proposed by 2051, more than double the 127,300 homes currently in Geelong.
The City of Melbourne, which includes the CBD and suburbs like Carlton, Flemington, Kensington, North Melbourne, and South Yarra, follows with a target of 134,000 new homes, up from the 110,100 currently.
The Melton LGA, situated about 40 kilometres west of Melbourne’s CBD, is third with a proposed target of 132,000 new homes. This area had about 69,000 homes in 2013 and is one of the fastest-growing municipalities, boasting a 6.6 per cent annual population growth.
Other growing outer suburban LGAs are also set high targets. Wyndham in the southwest is targeted for 120,000 new homes, Casey in the southeast for 104,000, and Hume in the northwest for 98,000.
The government emphasises the need for more homes in established suburbs, setting a combined target of 72,000 new homes in Darebin, Merri-Bek, and Monash.
Boroondara, identified by housing advocacy group Yimby Melbourne as the most in-demand LGA with significant growth capacity, has set a target of 67,000 new homes.
Kingston, benefiting from its proximity to the Suburban Rail Loop project, has set a target of 59,000 new homes.
The government's investments in skills, training, and infrastructure such as schools, hospitals, and transport will support this growing population.