The state of Victoria is facing increasing challenges in the social housing sector, as the local government sells around six properties per month, most of which are designated for families at risk of homelessness. This comes amid bleak forecasts pointing to a slowdown in new social housing construction programs, with warnings that the social housing pipeline could come to a complete halt.
According to an analysis conducted by the Community Housing Industry Association (CHIA), only 9,300 new social homes are expected to be built in Victoria by 2030—a figure far lower than other states such as New South Wales and Queensland, which plan to add 15,000 and 17,000 social homes, respectively, over the same period.
Research shows that Victoria currently has the lowest proportion of social housing nationwide, with a total of 87,356 social homes as of June 2025, representing only 3.21%. Despite the major housing construction project launched in 2020 with a budget of $6.3 billion to build over 13,300 new social and affordable homes, it is not currently expected to significantly impact the proportion by 2030, particularly with the full allocation of funding.
In contrast, New South Wales and Queensland are benefiting from additional investments to improve their social housing supply, putting Victoria in a clear dilemma. Data also indicates that the Department of Families, Fairness, and Housing sold 128 properties between June 2024 and March this year, with another 34 properties currently for sale. These sales are usually due to poor property condition, failure to meet required standards, or location far from essential services.
Despite the sales, the administration reinvests the proceeds into new projects and the renovation of existing homes, with 408 new homes purchased during the same period. Sarah Tuohy, CEO of CHIA, emphasized the urgent need for additional resources to address the social housing crisis in the state. She also called on the government to take serious steps to reduce the gap between Victoria and other states regarding social housing rates.
Tuohy added that around 24,000 of the 56,000 people on the social housing waiting list are in urgent need, including individuals fleeing domestic violence or currently staying with friends or sleeping in their cars. Nevertheless, this group continues to face waiting periods of up to 17 months for housing.
For individuals in the private rental market, Tuohy noted that they often pay more than they can afford, forcing them to cut back on essential needs such as urgent medical care. She confirmed that the large-scale housing construction project is a positive step toward addressing the issue, but it requires greater continuity and additional funding to ensure the intended goals are achieved.
