Media Release
HOUSING PRESSURES UNDERMINING TREASURER’S PRODUCTIVITY PUSH IN PERI-URBAN VICTORIA
Peri Urban Councils Victoria (PUCV) has warned that rocketing housing prices and falling building approvals are creating a drag on productivity — undermining the Federal Government’s ambition to “lift the speed limit” of the Australian economy.
As part of the alliance’s 2026-27 Pre-Budget Submission, PUCV has outlined urgent reforms and targeted funding needed to unlock housing supply in Victoria’s peri-urban growth areas — communities that remain comparatively affordable but are rapidly losing that advantage.
The call from PUCV comes as key data released showed the median house price in Melbourne was just under $1 million and building approvals across the country fell by almost 15% or to just over 13,000 homes, falling well short of the 20,000 minimum monthly target of home to meet the National Housing Accord.
PUCV Chair, Cr Moira Berry said these figures were concerning when coupled with recent rate rises that were undoubtably going to make the cost of housing for Victorian’s even further out of reach.
“Of course, if housing prices, along with so many other cost of living factors, are soaring so too is the pressure people search for more income to support the family budget,” Cr Berry said.
“If Treasurer Chalmers is serious about lifting productivity, there are clear steps that can be taken to remove the bottlenecks in housing supply,” Cr Berry said.
“Peri Urban Councils have long been advocating for reforms to get housing ready land on the market yet despite the almost universally agreed use of term ‘crisis’ we are seeing funding inertia from our state and federal leaders,” Cr Berry said
In the 2026-27 Pre Budget Submission PUCV is calling for:
A Housing Enabling Loan facility to allow councils to borrow against future developer contributions that can deliver critical infrastructure when it is needed — not years later.
A top of up both State and Federal liveability infrastructure funds to support essential liveability and community infrastructure outside DCP scope.
“People want to live in our communities and there is extraordinary demand for house and land packages because they sit well below the $800K and beyond price tag you will find in Melbourne,” Cr Berry said.
“Yet the front-end cost to our member councils of meeting this demand and getting land ready for housing is really out of reach for smaller local governments,” Cr Berry said.
“We have smaller rate basis, limited borrowing capacity and are hamstrung by out-of-date Development Contribution Plans that leave councils with significant funding gaps that limit our ability to pay for basic services,” Cr Berry said.
“Crissis are not solved without action and intervention and if our State and Federal leaders continue to dismiss real time solutions to meet a fundamental need such as housing, then there is only one way housing prices are going and that is up,” Cr Berry concluded.