Regional Victoria is at a housing crossroads. Once known for its affordability and lifestyle appeal, it now faces mounting housing pressures driven by strong population growth, rising costs, and systemic policy challenges.

Over the past two decades, annual population growth in Regional Victoria has grown strongly, with key centres like Geelong, Ballarat, Bendigo, and Warragul/Drouin absorbing most of this growth.

This growth, in the absence of commensurate supply, has eroded Regional Victoria’s long-standing affordability advantage. Since 2011, median house price growth has outpaced Melbourne’s, mortgage repayments have doubled, land prices have surged, and construction costs have increased by over 30%. These trends are also reflected in the rental market, where vacancy rates are at record lows and rents are rising faster than in Melbourne.

Without urgent reform, Regional Victoria risks entering a new era of housing unaffordability—constraining growth, limiting economic opportunity, and weakening regional resilience.