By mid-2025, the Victorian Government’s Big Housing Build has yet to live up to its promise. Just 2,614 homes have been completed since the $5.3 billion program was announced in 2020—barely a quarter of the 12,000 homes pledged. Meanwhile, the queue for social housing has stretched past 65,000 households, with demand rising for the third quarter in a row. What was meant to be a reset for Victoria’s housing system is beginning to look more like a holding pattern.
Those are the numbers. What they represent, say critics, is more than poor project management—they’re symptoms of a broader institutional lethargy in the face of a growing emergency.
The Big Housing Build was meant to reset the game. With the largest single housing investment in Victoria’s history, the Allan Labor Government pledged to increase social housing stock by at least 10%, promising 8,700 new homes. It now concedes only 2,614 are finished, while 10,000 are “underway.” Four years on, the word “underway” is beginning to wear thin.
At the heart of the crisis is a demand ballooning faster than the system can keep pace. Applications to the Victorian Housing Register jumped 2.7% in the last quarter of 2024 alone. Minister for Housing Harriet Shing has defended the government’s approach, citing the 10,000 homes under construction and the introduction of a year-long stamp duty concession for off-the-plan apartments and townhouses to spur private development. “Our commitment to social and affordable housing hasn’t wavered,” she said at a recent public committee hearing. “The challenges are complex, but we are tackling them.”
For many, that assurance isn’t enough. Shadow Housing Minister Richard Riordan has led the charge in Parliament. “Labor can’t manage money, can’t manage housing, and Victorians are paying the price,” he said. “We were told 8,700 homes. We’ve got less than a third of that. If you’re on that waiting list, what message does this send you?”
The state opposition has sought to frame the government’s failure as emblematic of broader mismanagement—an accusation repeated across sectors, from transport to health. But where housing differs is the immediacy. Renters don’t have time to wait out election cycles. The need is now.
Among those watching closely are housing advocates who say the cracks in the system are widening fast. The Council to Homeless Persons reports a 33% increase in Victorians seeking homelessness support services over the past two years. That includes growing numbers of the so-called “working homeless”—people holding down jobs while sleeping in cars, couch-surfing, or staying in temporary shelters. These are not isolated stories; they form a pattern.
The situation is especially grim for those on low incomes. Nearly 42% of renters in the bottom two income quintiles are experiencing rental stress—defined as paying more than 30% of income on rent. For some, that number is pushing 50%.
Even where housing is available, affordability is often not. Recent figures from CoreLogic show that Melbourne’s median rental prices rose 13.1% year-on-year to March 2025. Combined with real wages still recovering from inflationary pressures, this leaves many households squeezed from all sides.
The government’s housing policy isn’t only facing scrutiny over delays—it’s also confronting resistance over delivery methods. The controversial plan to demolish ageing public housing towers in suburbs like North Melbourne and replace them with mixed-use developments has drawn public protest. Residents say they’ve been blindsided, with many concerned about losing their communities and being forced out before replacement housing is ready.
At a recent rally on Alfred Street, tenants held signs reading “We Live Here” and “Homes Not Promises”. For many, the towers may be outdated, but they are still home.
The government insists it will not demolish buildings with residents still inside. “No one will be evicted. Tenants will be consulted and supported throughout,” said a departmental spokesperson. That message, however, is landing with mixed results. Advocates argue the trust deficit between residents and bureaucrats is too wide—and decades in the making.
Housing Minister Shing, meanwhile, has pointed to structural constraints, including labour shortages in construction, rising materials costs, and post-pandemic supply chain issues. These are real problems—but not unique to Victoria. Critics argue that the state’s response has lagged behind jurisdictions with comparable pressures. New South Wales, for instance, has completed over 6,000 social homes in the same period despite committing less upfront.
Budget papers from May 2025 allocate a further $1.2 billion to extend the Big Housing Build by another two years. Whether that will be enough to restore faith remains to be seen. Meanwhile, families waiting on the Victorian Housing Register are left juggling temporary rentals, rising rents, and a lottery-like chance at long-term stability.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
