Melbourne's Housing Density Reform Sees Latest Developments and What Happened This Week

This week, the Victorian government announced plans to amend the Melbourne Planning Scheme to allow for increased density in key activity centres, including the Melbourne CBD, South Yarra, and Footscray. The move is part of a broader effort to address the city's housing affordability crisis and meet the state's growing population needs.

The push for housing density reform in Melbourne matters now because the city is experiencing rapid growth, with the population projected to reach 6 million by 2030. The Victorian government has set a target of building 1.1 million new homes by 2030, with a focus on increasing density in well-serviced areas. However, the reform has sparked concerns among residents and community groups about the potential impact on local character, traffic, and infrastructure.

Local Developments and Initiatives

In Melbourne's inner-north, the suburb of Brunswick is seeing a surge in high-rise developments, with several projects currently under construction along Sydney Road and Lygon Street. The Moreland City Council has established a series of urban design guidelines to ensure that new developments are consistent with the area's character and meet the needs of local residents. Meanwhile, in the city's south-east, the St Kilda Road precinct is undergoing significant transformation, with several major developments planned or underway, including the redevelopment of the St Kilda Road Baptist Church site.

According to data from the Victorian Department of Environment, Land, Water and Planning, the number of dwellings in Melbourne's inner-city areas has increased by 25% over the past five years, with the median house price rising to $1.1 million. The City of Melbourne's latest housing strategy, released in 2022, sets out a vision for increasing housing supply and affordability, with a focus on delivering 10,000 new homes in the next decade. As of June 2026, the city has approved 3,500 new dwellings, with a further 2,000 currently in the pipeline.

What Happens Next

As the Victorian government continues to roll out its housing density reform, residents and community groups will be closely watching the impact on local neighbourhoods. The government has committed to engaging with the community and ensuring that new developments are well-designed and meet the needs of local residents. In practical terms, this means that residents can expect to see more high-rise developments in key activity centres, as well as increased investment in local infrastructure, including public transport and community facilities. With the reform set to continue rolling out over the coming months, it will be important for Melburnians to stay informed and have their say on the future of their city.