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Victoria has announced cancellation of its plans to host the Commonwealth Games, with the newly-freed up budget to instead go towards the building of social and affordable housing.
The event was slated to take place across regional and rural locations Geelong, Bendigo, Ballarat and Gippsland for 12 days from 17 March to 29 March 2026.
Premier Dan Andrews cited cost issues as the reason for the cancellation, noting that it became clear the $2.6 billion that had been budgeted for the event would not be sufficient to produce it, with actual costs projected to be closer to $6 billion.
Instead, the government will allocate the sequestered budget to fulfilling legacy benefits, such as upgrades to sporting facilities and a tourism pool to be accessed by the regions that were formerly to play host. Further, $1 billion will be dedicated to building at least 1,300 affordable and social housing units.
While the Games were slated to deliver an ultimate boost in housing, with facilities for athletes that were to be built to eventually benefit the communities as places for permanent accommodation, Mr Andrews said that this adjustment would ultimately deliver more permanent homes, sooner than intended.
“We were not building permanent housing for athletes and others,” Mr Andrews said. “We would build temporary structures, they would come down, and then we would proceed with legacy upgrades,” he said, explaining that permanent accommodation would have been a product of hosting the Games, but not until after the event, at the sites that hosted temporary accommodation.
Mr Andrews argued that this plan would ultimately deliver more direct benefits to the regions that were set to host the event.
“I don’t think there will be any argument today that one of the biggest challenges our state faces … housing is our biggest challenge. A billion dollars for at least 1,300 units, that is a massive boost,” he said, adding that strategic partnerships may enable the government to produce more than the estimated 1,300 homes.
The move has already been backed by the Council to Homeless Persons, who welcomed the government’s reprioritisation of the funds in question.
"Regional rents have gone through the roof while vacancy rates have remained very low. That’s a perfect storm pushing more people into homelessness,” Council to Homeless Persons CEO Deborah Di Natale said.
"This is a statewide crisis, so it’s really important to see the new social housing commitment extend beyond the four regional hubs that would have hosted the Games,” she added, noting that the housing commitment would also deliver social and economic benefits for regional Victoria, much as tourism-attracting events do.
Ms Di Natale encouraged the government to further its commitment, noting that increasing social and affordable housing will play a huge role in addressing the rental crisis currently facing the state.
"We can supercharge those gains with a commitment to building at least 6,000 public and community homes every year. Ending homelessness and fixing the housing crisis hinges on a commitment of that magnitude,” she said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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