The Victorian government is selling off homes at a rate of six a month amid warnings the state’s social housing pipeline is about to flatline.
The Victorian government is selling off six properties a month, most intended for families at risk of homelessness, amid warnings its social housing pipeline is set to flatline.
It comes as new analysis by the Community Housing Industry Association reveals that by 2030 the state will build just 9300 new social houses, a number that will be surpassed by NSW and Queensland.
The CHIA research shows Victoria’s 87,356 social homes, as of June, 2025, represents the lowest proportion for any state in the nation.
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While noting the increase will come as a result of the more than 13,300 new social and affordable homes planned under the state’s $6.3bn Big Housing Build announced in 2020, they have warned that funding is now fully committed.
By contrast, extra funding in NSW will add 15,000 to their supply by 2030, while Queensland will gain 17,000 in the same period — despite a significantly smaller population.
Separate Department of Families, Fairness and Housing data reveals that from June 2024 to March this year, they sold 128 properties — about six a month, with another 34 awaiting sale.
The department sells homes when they are in poor condition, not meeting environmental and accessibility standards or are located far from services and transport.
![10 Pine St, Frankston North - for herald sun real estate](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
10 Pine St, Frankston North, was among the homes sold off by the Department of Families, Fairness and Housing earlier this year.
CHIA Victoria chief executive Sarah Toohey is calling for more funding for social housing as the state reaches the end of its last wave of funding.
Funds are put back into new supply, and renewing other homes. The department bought 408 in the same timeline.
CHIA chief executive Sarah Toohey said while Victoria’s pipeline of projects had been a step in the right direction, the state still had the nation’s lowest proportion of social housing at 3.21 per cent — a ratio that would barely move by 2030.
Coupled with the attrition of losing more than 120 homes in just 20 months, and major investments interstate, particularly from Queensland’s Coalition government, she said it was essential the Allan government committed another $6.2bn in funds for the next decade in the May budget.
Ms Toohey said while the state’s Big Housing Build had helped begin to correct years of neglect for social housing, more was needed.
21 Plantation Avenue, Frankston North, was another of the homes sold by the department earlier this year.
Inside, the home has seen better days — with what appears to be extensive mould throughout.
“Those homes are coming down the pipeline, it’s just we need to keep going,” she said.
“We were starting at the back of the pack and we needed to be doing more to catch up.”
Ms Toohey said about 24,000 people of the 56,000 on Victoria’s social housing wait list were classified as urgent as they fled domestic violence or were already couch surfing or sleeping in their car.
Even this group faces a 17-month wait for housing.
“And there are others who are in the private rental market who are paying more than they can afford, and they are cutting back on urgent medical care,” Ms Toohey said.
Australian Housing and Urban Research Institute managing director Dr Michael Fotheringham said Victoria’s Big Housing Build had led the nation in terms of its investment into social housing.
The Australian Housing and Urban Research Institute managing director Dr Michael Fotheringham says social housing still needs a 20-year government investment.
The Allan government is being called on to free up hundreds of billions at the next state budget to support new social housing supply. Picture: NewsWire / Josie Hayden.
However, he said it had followed “several decades of neglect” and that failing to follow through with more funding and more social housing now would mean “we won’t have solved the problem”.
Dr Fotheringham said the CHIA proposal would “certainly make a big difference”.
“If we expanded it (the Big Housing Build) to a 20 year program, that’s the investment that it really needs,” he said.
“We have really serious affordability and supply challenges, so there’s a lot more to be done.
“It should be a budget priority this year.”
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