Victoria's Housing State - 800k new homes by 2034

Source: https://www.vic.gov.au/victorias-housing-statement

Victoria’s Housing Statement: The Decade Ahead 2024–2034 outlines the Victorian Government’s ambitious plan to address housing supply and affordability challenges over the next decade. Released in September 2023, the statement sets a target to build 800,000 new homes across the state by 2034, averaging 80,000 homes per year. This initiative is part of a broader strategy to construct 2.24 million homes by 2051 to accommodate a projected population of 10.3 million. 

Key Focus Areas

1. Accelerating Planning Decisions: Reforms aim to streamline Victoria’s planning system by clearing backlogs of permit applications and providing certainty in approval timeframes. Measures include expanding the Development Facilitation Program and removing permit requirements for single dwellings on lots over 300 square metres without overlays.

2. Affordable Housing Near Employment Hubs: The plan emphasizes building homes closer to workplaces and essential services to reduce urban sprawl. This involves developing medium- and high-density housing in established suburbs and near transport corridors. 

3. Enhancing Renters’ Rights: The government intends to close loopholes that increase living costs for renters, provide greater lease security, and expedite dispute resolutions to keep cases out of the Victorian Civil and Administrative Tribunal (VCAT). 

4. Expanding Social and Affordable Housing: Plans include accelerating the rollout of social and affordable homes and initiating Australia’s largest urban renewal project across Melbourne’s 44 high-rise social housing towers. 

5. Long-Term Strategic Planning: The statement commits to developing a long-term plan to guide Victoria's growth, including reviewing the Planning and Environment Act 1987 to ensure the planning system meets future needs. 

Implementation and Partnerships

The government plans to collaborate with the housing industry through an Affordability Partnership to deliver the targeted homes. This partnership aims to facilitate the construction of 648,000 homes in metropolitan Melbourne and 152,000 in regional and rural Victoria over the next decade. 

Challenges and Criticisms

Despite the ambitious targets, the plan has faced criticism for lacking detailed strategies to overcome existing barriers such as infrastructure delays and complex approval processes. Industry leaders have expressed concerns over the feasibility of the targets without significant reforms to expedite planning and development phases. 

Additionally, recent data indicates a decline in housing completions, with only 60,220 homes completed in 2024, falling short of the annual target. Critics attribute this shortfall to factors like high taxation and regulatory burdens that deter developers. 

The social housing sector also highlights a growing crisis, with over 61,587 people on the waitlist as of June 2024, surpassing the capacity of major venues like Marvel Stadium. Advocates urge the government to increase its commitment to social housing to meet the escalating demand. 

More Information

For more detailed information, you can access the full Housing Statement on the Victorian Government’s website: Victoria's Housing Statement. Subsequently, you can call JKY Town Planning to discuss further.