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What we'll do

As councils embed housing targets into planning schemes, we’ll consider developing locally specific targets for social and affordable housing for inclusion in planning schemes.

We’ll explore simpler rules for affordable housing as part of the review of the Planning and Environment Act 1987 so the Minister for Planning and councils can obtain a fair and equitable affordable housing contribution as part of a new development.

Why this is important

As elsewhere in the world, rising home prices and rents have resulted in fewer affordable homes in Victoria. If yours is a low-to-moderate income household, your best prospect for a home could be in a place and of a type that doesn’t suit you. If yours is a very low-income household, finding an affordable home can be almost impossible. Worse still, many Victorians don’t have a home.

An increasing number of Victorians need social or affordable housing, and some wait many years for it. In September 2024, there were 53,554 households waiting for a home on the Victorian Housing Register. Also, 292,041 Victorian households (mostly very low- and low-income households) were experiencing rental stress.

We need to set ambitious targets to ensure there is enough social and affordable housing in the coming decades. These targets will guide future investment and make clear to communities and the housing sector what social and affordable housing is needed and where it should be built.

Some planning schemes in Victoria incentivise affordable housing by allowing more development on a site if affordable housing is provided on it. Some cities around the world set a required percentage of affordable housing in new developments: some submissions said that Victoria should also do this. The idea raises issues that need changes to legislation, which the review of the Planning and Environment Act 1987 will explore.

Responsibility

Department of Transport (DTP)

Department of Families, Fairness and Housing (DFFH)

Short term milestone

How we will do it

  • Consider setting policy targets for percentage of new homes that are social or affordable.
  • Review the legislative framework that supports the delivery of social and affordable homes.

Leading pillar

Page last updated: 28/02/25