Victoria's ambitious Housing Statement is falling short, with the state delivering 20,000 fewer homes than its annual target just two years after the plan's launch.
In 2023, the Victorian Government committed to delivering 80,000 new homes each year for the next decade. But figures from the Australian Bureau of Statistics (ABS) shows that just 60,000 homes were delivered in CY 2024, falling well short of the pace required to meet the state's population growth. And projections show no indications of major uptick, with apartment supply at an estimated shortfall of more than 20,000 dwellings through to 2029.
Property Council of Australia Victorian Executive Director Cath Evans says the housing crisis demands much more than planning documents and policy announcements.
"Victoria is growing at pace, and so is the housing crisis. We're not just behind schedule, we're off track," Ms Evans said.
"Melbourne's population is projected to grow faster than New York City's over the next ten years.
"We welcomed the Housing Statement as an important step forward. But the results haven't followed. The 20,000-home shortfall in just one year is deeply concerning. Unless further action is taken now, that gap will only widen.
"It's been encouraging to see the government begin to tackle planning red tape and the performance of key referral authorities, and we look forward to more action on this in the future.
"But positive movement on planning reform isn't enough on its own to translate planning documents into actual new homes for Victorians.
"Two years on, and there's been more increased taxes announced on property owners in Victoria in that period than incentives and relief.
"We recently welcomed the removal of Off-the-Plan Stamp Duty Exemptions for apartments, units and townhouses, but this has not been enough to encourage significant change.
"The sector urgently needs tax relief. Cut the foreign investment taxes killing much needed investment into Victorian property, level the playing field with other states and introduce smart incentives to elevate buyer and investor confidence."
"Only this, combined with the ongoing removal of red tape from the planning system, can give the property industry the best possible chance of meeting that much needed housing target."
