Wealthy inner and middle Melbourne suburbs that resist change are creating a “segregated” city in which postcodes determine opportunity, while Melbourne’s west bears the brunt of housing growth, Housing Minister Clare O’Neil has warned.
Addressing the West of Melbourne Economic Development Alliance’s (WoMEDA) summit on Wednesday night, O’Neil said that as housing costs rise, people on lower and moderate incomes are being pushed further to the fringes.
Housing Minister Clare O’Neil says urban sprawl is a quiet driver of inequality.Credit: Chris Hopkins
They are spending hours each day commuting and missing time with their families, while wealthier inner and middle suburbs resist new housing near established jobs and transport.
“When councils around Melbourne knock back townhouse or apartment developments near train stations, another Victorian family can’t afford to live close to their jobs,” O’Neil said.
“When one council says ‘not in my backyard’, another council must step up.”
O’Neil contrasted the rapid release of land and construction approvals in growth corridors such as Wyndham, Melton and Brimbank – which she said had done the “heavy lifting” – adding it was now time for the whole city to tackle Victoria’s housing challenge.
The federal minister’s comments echo similar calls from the Victorian government as it moves to accelerate density around transport hubs.
The policy has emerged as an increasingly polarising issue in Melbourne. Brighton residents protested last year, chanting “shame, premier, shame”, as Premier Jacinta Allan announced a sweeping housing plan to create 50 activity centres.
O’Neil told the summit that over the past 30 years, Melton had grown by 433 per cent and Wyndham by 316 per cent, compared with Boroondara and Bayside, which had grown by 24 and 28 per cent, respectively.
“There’s obviously a difference between what can be built on a greenfield site versus an existing suburb – you would expect Melton to grow faster. But the difference shouldn’t be that stark,” she said.
The Age is strengthening its focus on Melbourne’s west as part of a special series examining the positives and challenges the region faces. O’Neil spoke at the opening night of WoMEDA’s West of Melbourne summit, which Age reporters are moderating.
The minister pointed to her own suburb of Oakleigh in Melbourne’s south-east as an example of where more homes could and should be built.
“Those living on the fringe face higher transport costs and lower job access, while those closer in benefit from proximity, convenience and services that have had decades to get delivery right,” she said.
“That’s why increasing density in our middle-ring suburbs isn’t just a question of planning or aesthetics – it’s a question of fairness.
“Urban sprawl is a quiet driver of inequality. We can choose to build more inequality into Melbourne, or we can choose to create a modern, democratic city, where everyone gets a fair go.”
In a landmark report launched at the summit, WoMEDA warns that Melbourne’s booming west risks becoming a commuter belt unless governments urgently invest in jobs, transport and liveability.
According to the report, the west is racing to keep up with population growth, and about 153,000 new homes are needed between 2021 and 2036 – more than 10,000 a year. The bulk of the demand is in fast-growing areas such as Melton, Bacchus Marsh and Wyndham.
The alliance warns that housing supply in the west is struggling to keep pace with the booming population, driving up costs and threatening liveability.
Mambourin, in rapidly growing Wyndham, is a burgeoning suburb on Melbourne’s western fringe.Credit: Eddie Jim
The report, titled Unlocking Melbourne’s Economic Engine, also cites research from the University of New South Wales and the Community Housing Industry Association, which found Melbourne’s west had the lowest proportion of social housing in the country, while Brimbank had the highest rate of homelessness in Greater Melbourne, with more than 3800 residents rough sleeping or couch-surfing.
The report says state and national issues, including high construction costs, labour shortages, stamp duties and planning constraints, have contributed to a lack of housing availability in Melbourne’s west.
But it also pinpoints hurdles specific to Melbourne’s west such as land banking, lapsed planning permits and the high cost of remediating contaminated land such as the Maribyrnong Defence site.
As pressure rises on governments to remove obstacles to new developments amid a national housing crisis, O’Neil said the federal government was on track to deliver 55,000 new social and affordable homes by the end of the decade, including nearly 2000 under way in Melbourne’s west.
Despite a community backlash, the state government is also encouraging increased housing in established suburbs such as Brighton and Camberwell, by fast-tracking approvals and incentivising medium-density developments, to drive housing stock near public transport and services. Activity centres are also planned for Middle Footscray, West Footscray and Tottenham in the inner west.
O’Neil singled out Victoria, as well as South Australia and NSW, as leaders in addressing housing shortfalls.
“When we look around the world at the cities that have turned around their housing challenges, the reform they all have in common is gutsy planning reform,” she said.
The summit also heard from leaders in health, infrastructure and education, including Victoria University vice chancellor Adam Shoemaker and Western Health board chair Jill Hennessy, who discussed the strategy that calls for the west to be treated as a national priority.
Shoemaker said Melbourne’s west showed what happens when diversity and equity were seen not as burdens but as strengths. He said the region’s extraordinary cultural mix — with residents speaking hundreds of languages and bringing skills from across the globe — represented the best of modern Australia.
“Where some see difference, we see dynamism,” Shoemaker said. “In Melbourne’s west, equity isn’t a challenge to overcome – it’s our superpower.”
The West of Melbourne Summit, presented by WoMEDA with The Age, is held on October 22-23. For details go to womeda.com.au
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.