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YIMBY Melbourne
Flagship Report
State
16 April 2024

Missing Middle Housing Targets

An accountable system for housing abundance — 40,000 new homes every year. Melbourne's planning system lacks accountability. Our demand-driven housing target model ensures more homes are built where people want to live.

Lead Author: Jonathan Nolan
The Problem

Melbourne's planning system is currently focused on processes, rather than outcomes. As a result, the system lacks accountability across the board. So when a council utilises restrictive planning practices to stop new homes being built, there is nothing anyone can do.

But no council exists in a vacuum. When one LGA works to overwhelmingly block new housing, they impose greater economic costs not just on their own residents but on the entirety of Melbourne. It is time to introduce accountability to our city's planning system.

Through broad upzoning and a clear set of incentives shared by all inner-middle Melbourne councils, we can ensure that more homes are built across the entirety of our city.

Our Four-Step Plan

YIMBY Melbourne's plan to implement housing targets for a bigger and better Melbourne involves four key steps:

  • Upzone inner-middle Melbourne, increasing zoned capacity by 7.7x
  • Publish annual binding housing targets for the 19 LGAs where demand for infill housing is highest
  • Enforce housing targets through revenue-neutral 'carrot and stick' incentives
  • Deliver 40,000 new homes per year across inner-middle Melbourne
A Demand-Driven Model

We know we need more homes where people want to live, which is why our housing target model is demand-driven. Targets are higher when demand outstrips supply, and targets are lower when supply meets demand.

The best way for any Council to lower their housing target is simple: build more homes where people want to live.

Key Outcomes
  • Adopted by Victorian state government
  • Annual housing target reporting now mandated for councils
  • Framework influenced national housing policy debate
  • Upzoning inner-middle Melbourne would deliver a 7.7x increase in housing capacity