The Times Australia
The Times World News

.
The Times Real Estate

.

Victoria's housing plan is bold and packed with initiatives. But can it be delivered?

  • Written by David Hayward, Emeritus Professor of Public Policy, RMIT University

Victoria has led the states and territories in setting out a detailed housing statement[1] that it says will help tackle the state’s housing shortage.

Broad in scope and ambition, the plan includes new dwelling supply targets for Melbourne and regional Victoria, new fast-track deadlines for dwelling approvals and legislative reforms to protect private tenants.

There are also major place-based initiatives that, if successful, will transform Melbourne as a city. These include the re-purposing of its 44 high-rise public housing towers, a new planning act, as well as a freshly minted tax on short-term rentals to help fund more social housing.

There is a lot to be done, but do the individual initiatives stack up as a coherent package and, more importantly, will they deliver the policy goods?

Two men talking to a group of reporters
Dan Andrews with the Prime Minister Anthony Albanese in Melbourne earlier this week to discuss an accelerated social housing project. AAP[2]

One answer to that is to be found in its vision. Instead of addressing itself to colourful and culturally significant questions that surround housing – such as whether or not the government wishes all Victorians to live in a home of their own or in secure social housing - the statement sets itself a much less interesting challenge.

Affordable housing and plenty of it

Top of the list is the need for more housing, for as the premier put it in his introduction to the statement, “It’s a simple proposition: build more homes, and they’ll be more affordable”.

And more housing delivered faster is said to be needed because of a booming population. Gone are the pandemic-era years of population decline. Victoria is now the fastest growing state in the country[3], with 3.5 million more people expected to arrive over the next 28 years.

Read more: The Greens were right to pass Australia's Housing Future Fund bill – the case for further delay was weak[4]

The number one goal is to build 800,000 new dwellings over the next decade, with 250,000 or almost a third of these to be a product of the housing statement.

That’s a powerful if uninspiring goal, but the statement has little detail of where all those dwellings are to come from. We do know 60,000 are to come from ten new activity centres, 13,000 from streamlined planning regulations for medium and high density developments overseen by the planning minister instead of councils. Another 10,000 will result from converting commercial buildings to residential, and 9,000 from using surplus government land.

Large public housing towers
Public housing blocks in North Melbourne. Part of the government’s plan is to demolish 44 public housing towers and replace them with improved, lower rise accommodation. AAP[5]

What about the backlog of local council approvals that figured prominently in the pre-statement publicity? Well that amounts to only 1,400 permits as it turns out, with an indeterminate number being held up perhaps for good reason.

Around 10,000 will come from new social and affordable housing, accounting for barely 4% of the planned additional supply. By way of contrast, the plan is expected to boost the supply of private rental accommodation by 70,000, or 28% of the new stock. That’s not good news for Generation Rent, which might have been hoping for new ladders into homes of their own.

But the statement is by no means bad news for tenants. There are new initiatives designed to bolster tenant rights, including a ban on rental bidding, establishing a new rental disputes agency, and restricting landlords’ ability to raise rents in between successive fixed-term rental agreements.

Who might be the statement’s biggest winners? That would be the building industry and the developers who drive new housing supply. This is a statement that promises them more work more quickly with lower costs. Those lower costs will come even if those dwellings are not built, and it is here that the biggest problems with the statement are to be found.

Potential problems

Victoria’s housing system depends heavily on private markets, which in turn depend on consumers willing and able to fund them. Declining real incomes, insecure work together with HECS debts for graduates provide the unmentioned backdrop to the housing statement.

Today’s high interest rate environment is not one that is conducive to increased dwelling supply or improved affordability, and the current record level of migration sits next door to it as a housing policy contradiction.

Read more: Governments are pouring money into housing but materials, land and labour are still in short supply[6]

Yes town planners play a role, but research shows new housing supply may not be the problem it has been made out to be, including by respected economists at the RBA[7].

Researchers have also pointed out planning laws and regulations have been subjected to countless reviews and reforms over the last two decades, including the introduction of a variety of fast tracks and templates, with no discernible impact on housing supply or affordability.

For all its ambition, the Victorian government’s housing statement sets bold targets, but has no clear means to achieve them. It offers a lot of individual initiatives, but in the end can be criticised for offering no compelling vision.

Read more https://theconversation.com/victorias-housing-plan-is-bold-and-packed-with-initiatives-but-can-it-be-delivered-213974

The Times Features

Why a Garage Shed is the Perfect Addition to Your Property

The most straightforward and most wholesome extension for any property. A garage shed is a potential solution for you, whether you are looking for an additional space for storage...

Revitalising Homes Through Strategic Architectural Renewal

Residential window replacement is one of the few home improvement interventions that goes far beyond simple aesthetic upgrades. Door frames and windows constitute these vital archi...

The Benefits of Animal-Assisted Speech Therapy For Children

Speech therapy has long been a standard for supporting children’s communication and emotional development. But what happens when you introduce a furry friend into the process? Th...

The Hidden Dangers of Blocked Drains and the Ultimate Solution for a Hassle-Free Home

Drain blockages are a big hassle to every homeowner and business owner alike. Whether it is a sink in the kitchen or bathroom, a clogged toilet, or a foul smell circulating aroun...

Understanding the Dangers of Ignoring a Gas Leak

Gas leaks are silent threats lurking within both homes and workplaces. A gas leak occurs when natural gas or any other gaseous substance escapes from a pipeline or containment. T...

Can You Sell Your House Privately in Queensland? Here’s How

Selling a house privately in Queensland is entirely possible and can be a cost-effective alternative to using a real estate agent. While agents provide valuable expertise, their co...

Times Magazine

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

How AI-Driven SEO Enhancements Can Improve Headless CMS Content Visibility

Whereas SEO (search engine optimization) is critical in the digital landscape for making connections to content, much of it is still done manually keyword research, metatags, final tweaks at publication requiring a human element that takes extensiv...

Crypto Expert John Fenga Reveals How Blockchain is Revolutionising Charity

One of the most persistent challenges in the charity sector is trust. Donors often wonder whether their contributions are being used effectively or if overhead costs consume a significant portion. Traditional fundraising methods can be opaque, with...

Navigating Parenting Arrangements in Australia: A Legal Guide for Parents

Understanding Parenting Arrangements in Australia. Child custody disputes are often one of the most emotionally charged aspects of separation or divorce. Parents naturally want what is best for their children, but the legal process of determining ...

Blocky Adventures: A Minecraft Movie Celebration for Your Wrist

The Minecraft movie is almost here—and it’s time to get excited! With the film set to hit theaters on April 4, 2025, fans have a brand-new reason to celebrate. To honor the upcoming blockbuster, watchfaces.co has released a special Minecraft-inspir...

LayBy Shopping