Victoria is facing a worsening housing crisis, with public and social housing levels significantly below national and international benchmarks.
While demand for emergency housing support soars, recent state government plans indicate a shift away from public housing in favour of community and affordable rental housing, raising concerns among advocacy groups.
The proportion of social housing in Victoria stands at just 3% of total households, compared to a 4% national average, according to the Council to Homeless Persons.
With more than a third of Australians seeking homelessness assistance residing in Victoria, housing advocates warn that urgent investment in public housing is needed to prevent the crisis from deepening.
Victoria’s Housing Shortage in Numbers
Victoria has the lowest level of social housing in the country, with public housing declining from 4% of total housing stock in 1994 to just 2.4% today, according to the Victorian Public Tenants Association. The figure rises slightly to 2.9% when community housing is included, but remains well below what experts deem necessary.
At the same time, housing stress in Victoria is escalating. According to the Council to Homeless Persons, the state has around 30% more people seeking homelessness assistance than New South Wales or Queensland.
The crisis is particularly severe among young people, with more than 15,000 Victorians under 25 requiring urgent housing support, according to the Herald-Sun.
Population growth is compounding the issue. Since 2000, Victoria has grown by 2.3 million people, and official projections indicate a further 4.2 million increase by 2056.
As demand continues to outstrip supply, rising rents and low vacancy rates are pushing more people towards homelessness, according to Council to Homeless Persons CEO Deborah Di Natale.
Government Policy Moves Away From Public Housing
Despite the growing demand, the Victorian government recently announced plans to demolish public housing towers in Melbourne’s inner north, replacing them with new developments that will contain no public housing units.
Instead, the redeveloped sites will include 400 community housing rentals and 300 affordable private rentals, according to state government announcements.
Community housing, unlike public housing, is managed by not-for-profit organisations rather than the government. This raises concerns over accessibility, as community housing providers can select their tenants, potentially excluding the most vulnerable groups.
According to Katelyn Butterss, CEO of the Victorian Public Tenants Association, this shift represents a major loss for those reliant on government-managed public housing.
Meanwhile, critics argue that the Victorian government is prioritising large-scale infrastructure projects, such as the $200 billion Suburban Rail Loop, over essential housing needs.
As public housing availability continues to decline, housing advocates warn that Victoria risks falling further behind in addressing its growing homelessness crisis.
