Melbourne’s eastern suburbs are set to accommodate tens of thousands of new homes over the next 25 years, but building enough homes is only part of the challenge.

What’s happening? In February 2025, then-Victorian Premier Jacinta Allan announced the Labor government’s finalised housing targets for 2051, including 76,500 additional dwellings in Whitehorse, 69,500 in Monash, 65,500 in Boroondara, 43,000 in Knox, 39,500 in Maroondah, 28,500 in Manningham and 25,000 in Yarra Ranges.

  • This means the eastern suburbs need to see an extra 347,500 homes created over the next 25 years – or about 13,900 every year.

  • While the targets have a goal to increase the number of social and affordable homes in Victoria, they do not mandate a minimum amount, instead setting an aim for the percentage of new homes that are social or affordable.

First things first: Social housing is an umbrella term that refers to a range of dwelling options for people on low-to-middle incomes or people struggling to pay rent, including:

  • Public housing, which is owned and managed by the Victorian government; and

  • Community housing, which is operated by not-for-profit organisations.

Affordable housing is for low-to-moderate income households that don’t qualify for public or community housing but still struggle to pay rent.

Building smarter, not bigger: Liz Seuseu, the associate principal of design and architecture firm Architectus, said the main challenge facing Melbourne’s east is finding a way to deliver more homes in a way that fits seamlessly within existing communities.

  • 🗣️ “We need to put density where density makes sense,” she told the Eastern Melburnian. “We need to put it near centres with transport, jobs and schools.”

Architectus associate principal Liz Seuseu

The current plan: Over the years, the Victorian Labor government has held the line that the  housing market’s inaccessibility was caused by not enough supply.

  • As part of the 2026/27 state budget, the Victorian Labor government committed $860 million over the next five years towards the Social Housing Growth Fund, which aims to deliver more than 7,000 new social homes, and a further $207 million investment towards supporting “better and more affordable housing”.

Other options: Victoria’s Liberal Party released its housing plans in February, with party leader Jess Wilson pledging to boost housing affordability by “releasing more land, bringing greater density to the inner city, protecting the voice of local residents and supporting growth in our regions”.

  • While the Coalition’s plans also include working alongside local councils to achieve appropriate housing targets, it has not yet released any specific targets for social or affordable housing.

In July, the Victorian Greens released their plans to make housing more affordable, including building more than 88,000 new public homes and mandating new developments with 15 units or more to deliver a minimum of 30 percent affordable housing.

One Nation would review government taxes, offer support for private and community organisations to deliver low-cost housing and relinquish unused government land.

Thumbnail Image Credit: Bob Tan