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The Victorian government has unveiled final housing targets for every local area, aiming to deliver 2.24 million homes by 2051.
The initiative seeks to ensure sufficient housing for young people, workers and renters, while balancing growth across metropolitan and regional areas.
Premier Jacinta Allan and Minister for Planning Sonya Kilkenny said councils and government will have to collaborate closely to be successful.
The housing targets aim to shift the focus from Melbourne’s outer suburbs, where growth has been concentrated in recent decades, towards established suburbs with existing infrastructure, transport and jobs.
Since 1996, Melbourne’s growth has been uneven between the outer and inner suburbs.
Outer suburban councils saw the highest increase in housing growth, with Melton growing 433 per cent, Wyndham 346 per cent, and Casey 211 per cent.
In contrast, inner suburban areas like Boroondara and Bayside experienced some of the lowest growth rates, at just 24 and 28 per cent, respectively.
To alleviate the pressure on Melbourne’s urban fringe, the government aims to allocate 70 per cent of growth to established areas and 30 per cent to the outer suburbs, rather than the reverse.
A quarter of the projected homes will be built in regional Victoria, with Greater Geelong set to receive 128,600 new dwellings, Ballarat 46,900, and Bendigo 37,000.
To accommodate growth, subtargets for greenfield development have also been introduced in Geelong, Bendigo, Ballarat and metro Melbourne.
In addition to setting housing targets, Victoria’s upcoming landmark plan will include a statement that holds councils accountable, specifying that they must modify planning schemes if they fail to ensure sufficient housing capacity.
If councils do not actively unlock space for new developments, the Victorian government said it would intervene through rezoning and changes to planning schemes.
Kilkenny will also retain powers to fast-track projects where developments are necessary.
“To the councils who used to block and who are now ready to build, I say to them: Let’s talk,” she said.
"We want to make sure our kids have access to the same opportunities as our generation, to be able to buy or rent a place close where we grew up and close to family – that’s where these targets come in.”
Premier Allan emphasised that Victoria's housing crisis requires urgent action and that growth must be distributed more evenly across the state.
“It’s simple – work with us to unlock space for more homes or we’ll do it for you,” she said.
“Our regional councils are already doing great work to deliver more housing, and we’ll continue to work with them to make sure they have the support they need to get more homes off the ground.”
The Property Council of Australia (PCA) welcomed the updated targets, acknowledging their role in addressing Victoria’s housing shortages.
However, Property Council Victorian executive director, Cath Evans, warned that without tax relief and reforms to reduce development costs, delivering these homes will remain a challenge.
“It is critical for the government to provide the industry with much-needed tax relief in its May budget to attract the investment we need to deliver to the revised housing targets,” she said.
“We support the ambitious housing targets outlined today, however, without targeted relief to address the fundamental structural issues facing the property sector, it is impossible to see how these targets can be delivered.”
The PCA urged the government to adopt its seven-point economic reform plan in its upcoming budget to support investment and ensure feasibility for housing projects.
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