The Albanese Government will provide a $2.5 billion investment, comprising $2 billion in concessional loans and $499 million in grants, to tackle the infrastructure constraints holding back housing delivery in Victoria, with the Carroll Government contributing at least $499 million.
The nearly $3 billion joint commitment is intended to support more than 66,000 new homes, including 25,000 for first home buyers.
Housing Industry Association (HIA) chief executive industry & policy, Simon Croft, said this announcement focuses on improving the housing supply.
“The announcement forms part of the Albanese Government’s commitment to work with states and territories to help deliver up to 100,000 homes for first home buyers, with a focus on unlocking housing supply through targeted enabling infrastructure funding," Croft said.
Croft said this weeks announcement recognises that increasing housing supply is critical to improving affordability and one of the largest impediments to delivery of more housing faster.
This includes boosting funding for ‘key last mile’ trunk infrastructure including roads, sewer and water piping and electricity supply.
“This announcement recognises that the fastest and most effective way to help first home buyers is to unlock more housing supply, and that means removing the infrastructure and planning barriers holding projects back,” Croft said.
“Builders often tell us that getting this key ‘last mile’ infrastructure is what holds many projects back from being delivered in a more-timely fashion, today’s announcement is a key plank in addressing that.”
HIA deputy executive director of Victoria, Steven Wojtkiw, said builders across the state are ready to deliver more homes but continue to face constraints that delay projects and increase costs.
“Victorian builders are ready to deliver, but too many projects are slowed by infrastructure constraints and delays outside their control,” Wojtkiw said.
“Ensuring peri-urban and regional growth areas are supported by the funding is a positive step that will help bring forward new housing opportunities across the state, not just in greater Melbourne.
“Any investment that helps unlock land, bring forward essential services and get homes to market sooner will make a real difference for Victorian first home buyers, and ease broader supply constraints.
“Getting the fundamentals right - land, infrastructure and approvals - is the key to improving housing affordability in Victoria."
HIA advocates for coordinated action across all levels of government to boost housing supply, including planning reform, streamlined approvals, investment in infrastructure and measures to expand the construction workforce.
“This welcome funding sends a clear signal to industry that governments are serious about boosting housing supply, and builders are ready to get on with the job of delivering more homes for Victorians,” Wojtkiw said.
