Three years after the release of the Housing Statement, the next Victorian Government must commit to a reset of the partnership with industry to ensure future housing policy translates directly to better supply and affordability outcomes for Victorians.

The Andrews Government created the Housing Statement in September 2023, setting a target of 80,000 new homes each year to ease the acute pressure facing Victoria’s housing market.

But with less than 55,000 new homes completed in the 12 months to March 2026, the policy settings are not delivering the right environment for the housing targets to be met.

Three years on, the industry signatories to the original Housing Affordability Partnership – the Housing Industry Association, Master Builders Victoria, Property Council of Australia, and the Urban Development Institute of Australia – are calling for a new partnership with updated terms of reference, new accountability measures and actions.

The refreshed partnership must include:

• A commitment to no new taxes or charges and a plan to reduce the volume and rate of existing property taxes and charges;
• A commitment to publishing accurate data across housing sectors that identifies where delays are occurring to improve transparency and accountability;
• A plan that aligns government infrastructure spending with the fastest growing areas in Victoria;
• A pledge to continue improving planning processes, including the rollout of the changes made to the Planning & Environment Act;
• Reduce the red tape and costs for builders including one registration, one fee for practitioners working across multiple registration categories;
• Reform social procurement requirements to reduce costs and deliver better value on projects;
• Securing a workforce pipeline through initiatives such as financial support to apprentices, students and employers to attract and retain the skills industry needs;
• Securing a stable and ongoing pipeline for modern methods of construction;
• A commitment to genuine consultation on any further policy reform impacting the industry.

The Executive Director of the Housing Industry Association Victoria, Keith Ryan, said that the home building industry has lost confidence in government due to the impact of ever expanding and more complicated regulatory requirements.

“Home builders want to build the homes that Victorians want to live in. Sadly, many of them have lost hope that the government will allow them to achieve this task.  The next Victorian government must prove, and not just claim, that it respects business by pausing and slowing down regulatory changes and reviewing existing laws to remove impediments to getting the homes Victorians want to live in built,” Mr Ryan said.

CEO of Master Builders Victoria, Michaela Lihou, said, “We need to see a renewed focus on the conditions that allow homes to get out of the ground – including attracting and retaining more skilled workers, reducing red tape, and implementing measures that restore confidence and investment in Victoria’s housing market. There have been almost two dozen new pieces of legislation imposed on the industry over the past three years, stifling small businesses, which make up the majority of the industry. We need to let our builders do what they do best – build homes”.

Victorian Executive Director of the Property Council Cath Evans said three years on from the Housing Statement, Victoria was still falling well short of the Government’s housing ambition.

“Three years ago, the Government set a clear ambition to build 80,000 homes a year. Three years on, we’re nowhere near that pace. Victoria needs to start focusing on policies that activate supply and measure success by what actually gets built against the needs of our growing population. While significant planning reform was passed earlier this year, we urgently need a roadmap out of the crushing taxes and charges imposed on the supply of new housing,” Ms Evans said.

UDIA Victoria CEO Linda Allison said that the Government’s current policies do not reflect market realities or buyer preferences and that more land supply and faster approval times were needed to deliver homes where people want to live.

“Industry can’t remain in a Housing Affordability Partnership if the government keeps pursuing a policy agenda that slows down housing and infrastructure in new communities. The next Government must reset the partnership by addressing the tax settings, unlocking supply and enabling industry to deliver the homes Victorians urgently need,” Ms Allison said.

-ENDS-

Key housing metrics since the release of the Housing Statement

• Victoria is building more homes than any other state, but its population growth is also higher – 300 people per day are moving to Victoria but Victoria is building fewer homes now than it did prior to the release of the Housing Statement.
• Since the introduction of the Housing Statement, 145,000 homes have been delivered; 55,000 homes below the target of 200,000.
• Over the past twelve months (Aug 2025-July 2026) Victoria has approved 24 per cent less apartments than its 15-year average (11,098 compared with 14,585)
• The latest 12-month housing completions shows Victoria delivered 55,000 homes – 25,000 short of the 80,000 per homes target
• After three years, the split between homes delivered in established areas versus greenfield areas remains close to historic averages of 50:50.  There has been no shift to the government’s target of 70 per cent of new homes being built in established areas.
• New home sales fell 27% in the last three months.
• In Victoria, the workforce supply is projected to increase from 9,180 workers in 2025 to 10,720 by 2030 and 12,600 by 2035. But demand is forecast to rise much faster, climbing from 29,250 workers in 2025 to 33,910 by 2030 and 39,310 by 2035. As a result, Victoria’s building and construction workforce shortfall is expected to grow from 20,070 workers in 2025 to 23,200 in 2030, and to 26,720 by 2035. 

Download the media release here

MEDIA CONTACTS AND INTERVIEW REQUESTS:
Linda Allison | CEO UDIA Victoria
0484386190
[email protected]