Melbourne housing crisis: 800 new social and rental homes across Melbourne to be delivered by 2026

In an attempt to speed up the race to build 800,0000 new homes over the next decade, three Melbourne locations are set to gain more than 800 new social, affordable and rental homes.

More than 800 new social, affordable and rental homes are to delivered in three key locations in Melbourne by 2026.

Three key locations across Melbourne are set to gain more than 800 new social, affordable and rental homes, as the Allan government attempts to fast-track the battle to build 800,000 new dwellings over the next decade.

Construction at the sites of three demolished public housing estates on Bluff Road in Hampton East, Banksia Gardens in Broadmeadows and Barak Beacon in Port Melbourne has begun, with the government on Thursday announcing the new housing developments would welcome new residents from 2026.

A total of 285 new homes — up from 146 — will be built on the Hampton East which was bulldozed last year, with a mix of one, two, three and four-bedroom homes.

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Of those, 202 will be social and affordable housing.

At Barak Beacon in Port Melbourne, where multiple former public housing residents put up a fight to save the ageing estate, 408 homes will be built.

Half or 200 of the new homes will be social and affordable, constituting a 46 per cent increase in social housing on site.

The four buildings will range from two to 11 storeys in height.

An extra 120 homes will be added to the existing Banksia Gardens site in Broadmeadows, all of which are social and affordable housing – a 10 per cent uplift on site.

Once the new homes are delivered in 2026, the other homes on the site will be renovated and modernised.

The social housing projects, delivered in partnership with the federal government, come as the Allan government struggles to fast-track building approvals as it attempts to build 800,000 new homes over the next decade as part of its ambitious Housing Statement.

Premier Jacinta Allan on Thursday could not provide a figure for how many homes had been built so far this year.

“What’s important here is that we are fully focused on doing everything we can to build more homes,” she said.

Mr Caine said social housing was critically needed across these three jurisdictions.

Recent data from Procore and Property Council showed confidence in the Victorian property industry had plummeted to its lowest-ever level outside the pandemic.

The survey, of more than 500 property insiders, puts Victoria’s Confidence Index at 90 — 10 points below neutral — compared to a national figure of 106.

The Victorian government has already spent millions of dollars buying and leasing privately-owned homes for public housing tenants in some of Melbourne’s most in-demand suburbs.

Critics of the state government’s $5.3bn Big Housing Build told the Herald Sun earlier that most of the 22 public housing properties being knocked down and rebuilt were “perfectly fit for purpose” and only in need of refurbishment.

Real Estate Institute of Victoria (REIV) president Jacob Caine welcomed the new developments, saying social housing was “critically needed” across the three jurisdictions.

“We’re delighted with this announcement and we want to see more of them and hear more of them (announced) in the coming months,” Mr Caine said.

Community Housing Industry Association Victoria (CHIA Vic) chief executive Sarah Toohey noted that the uptick in social homes was beyond the government’s initial goal of 10 per cent.

“With the redevelopment at Barak Beacon they have shown that they can smash this target, increasing social housing by 46 per cent,” Ms Toohey said.

“This result should set the bar for government ambition in future redevelopments.”

Ms Toohey said more than 146,000 Victorian households didn’t have their housing needs met and were experiencing housing stress, homelessness or were living in overcrowded homes.

She added that more than 146,000 Victorian households didn’t have their housing needs met and were experiencing housing stress, homelessness or living in overcrowded homes.

Council to Homeless Persons acting chief executive Tom Johnson said it was so important that the Victorian government delivered new public and community housing to those experiencing homelessness.

“Each night, about 30,000 people have nowhere safe to call home and are forced to jump from couch to couch or sleep rough in freezing temperatures,” Mr Johnson said.

“To comprehensively tackle Victoria’s homelessness crisis, the government must deliver 6,000 new social homes each year for a decade.”

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