Victoria Plots Delivery of $1bn Regional Housing Fund

Victoria has unveiled the delivery plan for its ambitious $1-billion Regional Housing Fund aimed at adding 1300 social and affordable homes to rural and regional areas.

The program is likely to present significant opportunities for developers through 2028.

The National Housing Accord implementation strategy for Victoria, released in November of last year, outlined a comprehensive plan to deliver 2546 affordable homes by 2029.

It has been sparked by significant regional population projections—the accord notes that “regional Victoria’s population will rise to 1.9 million by 2031 and by 2051, around 2.3 million people will call it home”.

Key initiatives include the $5.3-billion Big Housing Build, the $2.1-billion Affordable Housing Investment Partnerships, and the $1-billion Regional Housing Fund (RHF). ​

From the outset the state said it would expedite zoning, planning and land release, and work with local governments to enhance housing supply responsiveness. ​

The Regional Housing Fund initiative encompasses nine regional zones with specified unit allocations.

The largest developments are planned for Barwon with 238 units, followed by Loddon, 162 units and Goulburn, 140 units. About 300 units are yet to be allocated.

“The Regional Housing Fund provides an opportunity to make a significant difference to housing Victorians in greatest need,” the state said.

The program’s focus is on individuals experiencing homelessness, financial hardship, and regional communities requiring affordable housing solutions.

Of the new homes promised for regional areas, nearly 90 per cent would be designated as social housing.

The Regional Housing Fund’s first phase will deliver 700 public, 211 community and 114 affordable homes across the regions.

▲ The fund will deliver 50 affordable units at Colac and Wodonga.

Victoria is grappling with rising homelessness rates and the nation’s longest social housing waitlist. Public and community housing representing just 2.8 per cent of the state’s households.

Council to Homeless Persons acting chief executive Tom Johnson said the Victorian Government was sending a “strong message that public housing is a top priority”.

“That is essential because we know people experiencing homelessness get the best outcomes in public housing,” Johnson said.

Development Victoria has already established partnerships for new social and affordable homes at Geelong and Bendigo at former Commonwealth Games Athletes’ Villages sites, comprising 72 and 56 homes respectively.

The implementation includes multiple procurement strategies, incorporating modern methods of construction, social housing stock renewal, community housing sector partnerships, and existing stock refurbishment.

About 180 new and upgraded homes are already complete, including 50 transitional housing units and 134 upgraded homes.

Active construction includes 70 units across Shepparton, Seymour, and Rochester, with 20 scheduled for completion by 2025.

Additional developments include 50 affordable units each at Colac and Wodonga, plus 130 units designated for First Nations Victorians.

Energy efficiency on all new builds is a priority, with homes required to meet a 7-star NatHERS rating. ​

The Regional Housing Fund operates alongside the Government’s $5.3-billion Big Housing Build initiative, which has contributed $1.25 billion to regional Victoria.

Consultation will continue with regional partnerships, including local councils and key representatives, determining priority groups and housing type requirements. Ongoing stakeholder engagement will continue throughout project progression in regional and rural areas.

The Victorian Government and private investors will put $250 million towards regional housing through the Regional Worker Accommodation Fund (RWAF), backing more than 20 shovel-ready projects across the state.

The initiative aims to address housing shortages for essential workers in key sectors including health, agriculture, education, manufacturing and tourism.

Regional Victoria this month won $21.5 million in federal government funding for key community development projects as part of the $400-million regional Precincts and Partnerships Program for projects outside the capital.