Victoria has a housing crisis. That much is agreed upon. What's less agreed upon — at least by the Labor government — is who caused it and what to actually do about it.
After 10-plus years of Labor in Spring Street, Melbourne has some of the least affordable housing in the world. Melbourne's median house price sits above $900,000. Rental vacancy rates are at record lows. Homelessness has increased. Young Victorians are giving up on owning a home altogether.
But don't worry — the government has a plan. It involves targets, announcements, and absolutely no accountability for missing them.
The 800,000 Homes Promise
In 2023, Labor signed up to the National Housing Accord, committing Victoria to deliver 800,000 new homes over 10 years. Sounds ambitious. Looks great in a press release. Problem is, Victoria was already struggling to build 50,000 homes a year — well short of the 80,000 per year the target requires.
The Victorian Building Authority has reported declining building approvals. Construction costs have soared. Builders are going broke at record rates. And the government's solution? More planning reform announcements. More committees. More consultations with committees.
Activity Centres — The Plan Nobody Asked For
Rather than address the actual barriers to housing supply — taxes, developer levies, infrastructure costs, union-driven construction expenses — the Allan government's big idea was to rezone land around train stations and declare it all fixed. Never mind that the planning system takes years. Never mind that councils are fighting it. Never mind that infrastructure to service those homes doesn't exist.
The headline wrote itself. The houses did not.
Meanwhile, the Rental Market Is on Fire
Ask any Victorian renter how they're going. Vacancy rates in Melbourne have hovered below 1% for much of the past three years. Rents have risen 20-30% since Labor's last election win. The government introduced rent increase caps — a band-aid on a gaping wound that actually discouraged more rental properties from entering the market.
Supply fixes rental affordability. Rent controls reduce supply. This is not complicated economics. It's apparently complicated politics.
The Real Problem: Decade of Misplaced Priorities
The Andrews and Allan governments have spent billions on a suburban rail loop nobody asked for, level crossing removals that cost more than small nations' GDP, and a cancelled Commonwealth Games that cost $380 million for precisely nothing. The money that could have gone into social housing, infrastructure to open new suburbs, or first home buyer support went instead into vanity projects and union-friendly construction contracts.
If you'd like to wear your frustration on your chest, the Raiders of the Taxpayer Honeypot Tee says everything that needs to be said about where your housing money actually went.
Melbourne used to be the world's most liveable city. Labor's been working hard to fix that.