A new report from the Victorian Housing Peaks Alliance has brought renewed focus to the state’s ongoing social housing crisis.
According to the “Growing Social Housing” report, Victoria will need 80,000 additional social housing dwellings over the next decade just to reach the national average — a figure that highlights the depth of the challenge ahead.
Currently, Victoria has the lowest proportion of social housing in Australia, with only 3.1 per cent of total housing stock falling into the public or community housing category. Even after the state’s Big Housing Build is complete, this share is expected to rise only slightly to 3.5 per cent — still well below the national average of 4.5 per cent. Advocates warn that unless serious and sustained investment is made, this proportion could fall even further, to around 2 per cent by 2051.
What’s clear is that social housing should be recognised and treated as essential infrastructure — on par with hospitals, schools, and public transport. Housing plays a critical role in providing stability, supporting health and education outcomes, and reducing pressure on emergency and welfare services. Without secure and affordable housing, individuals and families are more vulnerable to cycles of poverty, unemployment, and poor health.
The demand is urgent and growing. More than 55,000 people are currently on Victoria’s social housing wait-list, an 8.4 per cent increase over the past year alone. Yet despite these figures, the state still lacks firm targets for expanding social housing stock. The report calls for the construction of nearly 8,000 social housing dwellings annually over the next 10 years to meet minimum needs. To fully meet expressed demand — including those not formally on the wait-list — the number could be closer to 28,000 per year.
While the scale of the task is significant, so too is the opportunity. A long-term, coordinated strategy could not only address housing insecurity, but also deliver broader social and economic benefits. A well-resourced social housing system could reduce homelessness, relieve rental stress, and foster more inclusive communities.
Addressing the housing shortage will require political will and public support, but the case for action is strong. Victoria now faces a critical choice: continue with short-term measures and risk deepening the crisis, or make housing a central pillar of future infrastructure planning. The time to act is now — with clarity, commitment, and ambition.
