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

This week, the Victorian government announced plans to increase housing density along major transport corridors, including the Upfield and Mernda lines, in a bid to address Melbourne's growing population and affordability crisis. The move is expected to see a significant increase in high-rise developments in areas such as Brunswick, Coburg, and Preston.

The push for increased housing density in Melbourne is not new, but it has gained momentum in recent months as the city grapples with a shortage of affordable housing options. With the population projected to reach 8 million by 2050, the government is under pressure to find solutions to the crisis. The latest developments are seen as a crucial step towards addressing the issue, but they have also sparked concerns about the impact on local communities and the city's liveability.

Local Implications

In Melbourne's inner-north, the suburb of Fitzroy is already experiencing the effects of increased density, with several high-rise developments either completed or under construction along Nicholson Street and Smith Street. The Melbourne City Council has implemented measures to mitigate the impact, including the introduction of a new planning scheme that prioritises affordable housing and community facilities. Meanwhile, in the outer suburbs, the City of Wyndham is investing $15 million in a new community centre in Werribee, which will provide vital services and amenities for residents in the rapidly growing area.

According to data from the Australian Bureau of Statistics, the median house price in Melbourne has increased by 10.2% over the past 12 months, reaching a record high of $943,000. The surge in prices has made it difficult for first-home buyers to enter the market, with many being forced to look for alternatives in the outer suburbs. The government's plans to increase housing density are seen as a way to address this issue, but critics argue that it will lead to a loss of character and charm in Melbourne's unique neighbourhoods. As of June 2026, there were 34,000 apartments under construction in Melbourne, with a further 23,000 approved but not yet commenced.

As the debate over housing density continues, residents and community groups are calling for greater consultation and transparency in the planning process. The Victorian government has established a new advisory committee, which includes representatives from the University of Melbourne, RMIT, and the Australian Institute of Architects, to provide guidance on the implementation of the new planning policies. With the future of Melbourne's liveability and affordability hanging in the balance, the coming weeks and months will be crucial in shaping the city's development trajectory.