State secures largest share of national funding, but housing demand still outpaces supply
Victoria is set to gain 1,275 new homes through $991 million in funding from the second round of the Housing Australia Future Fund (HAFF), as part of national efforts to boost social and affordable housing supply.
The 25 approved projects will be delivered by community housing providers across the state and include more than 100 homes earmarked for Aboriginal Victorians. The program is jointly funded by the Commonwealth and Victorian governments.
Community Housing Industry Association Victoria (CHIA Vic), the state’s peak body for community housing, welcomed the announcement.
“As the housing crisis continues to bite, it’s heartening to see state and federal governments working together to provide the urgent financial support needed to build more social homes,” said CHIA Vic spokesperson Jess Pomeroy (pictured right).
Victoria has received $4.3 billion in total HAFF funding across two rounds – the highest of any state or territory – which is expected to deliver 5,418 social and affordable homes.
“This represents more than 30% of the total funding pool and almost 30% of all homes,” Pomeroy said.
The announcement comes amid a warning that Australia is falling behind on its housing targets. A report from the National Housing Supply and Affordability Council (NHSAC) forecasts a shortfall of around 262,000 homes by mid-2029 if current building rates persist. The State of the Housing System 2025 report estimates that for every five homes needed, only four will be delivered, with no state or territory currently meeting its share of the national goal to build 1.2 million homes within five years.
Pomeroy noted that while Victoria’s HAFF allocation is significant, it is not enough to meet existing demand.
“Waiting lists for social housing continue to grow, and currently 146,000 families and individuals need a rent-capped home they can actually afford,” she said.
According to CHIA Vic, the state needs 80,000 additional social homes over the next decade to reach the national average of 4.5% social housing stock. Victoria currently sits at just 2.9%.
“Our charitable sector has the experience to deliver the social homes that Victorians need,” Pomeroy said. “The scale of Victoria’s HAFF projects demonstrates the community housing sector’s capacity to build, deliver, and manage more affordable homes for people in need.”
The HAFF aims to support the construction of 30,000 new social and affordable homes nationwide over five years.
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