Housing Authority Shake-Up 2026: How New Policies Could Slash Waitlists and Rents

Victoria’s state housing authority, Homes Victoria, has named seven ageing high-rise blocks that will be razed and rebuilt in the next stage of its social-housing renewal program, signaling a major pivot in public housing policy that will affect hundreds of older tenants. The towers—29 Crown St Flemington, 94 Ormond St Kensington, 159 Melrose St North Melbourne, 27 & 25 King St Prahran, 150 Inkerman St St Kilda and 150 Victoria Ave Albert Park—were all constructed under the Older Persons High-Rise Program and house residents aged 55-plus. Relocations begin in July, with demolition works scheduled to finish by 2028, the housing authority confirmed. Housing Minister Harriet Shing said the decision follows structural assessments showing the concrete towers have reached “the end of their useful life.” The redevelopment aims to triple dwelling capacity—from 10,000 to 30,000 residents—while meeting 7-star energy-efficiency targets and embedding a mix of public, community and market-rate rentals to boost housing supply. Advocates, however, warn the rapid timeline could traumatise elderly tenants. Fiona York from Housing for the Aged Action Group described the notice as “a shock,” noting some residents are in their 80s and 90s and believed the towers would be their forever homes. The Victorian Public Tenants Association is calling for a dedicated relocation taskforce, on-site social workers and guaranteed right of return to new apartments. The redevelopment comes amid a national affordable-housing crunch: vacancy rates sit below 1 percent in inner Melbourne, and social-housing waiting lists have surged 14 percent year-on-year. Urban-policy researchers argue that demolishing stock without turning the sites over entirely to public housing risks deepening the shortage, while proponents counter that mixed-tenure models unlock private capital and speed delivery. For nearby suburbs, local governments expect temporary pressure on rental markets as households relocate. Small-business groups, meanwhile, are lobbying for ground-floor commercial space in the new designs to keep street-level activity alive during construction. Homes Victoria will begin one-on-one interviews with residents next month to map individual needs. Tenants who accept relocation packages will receive compensation for moving expenses and priority placement in newly built units or comparable public-housing stock. With demolition crews already active in Carlton and Richmond, the housing authority’s acceleration signals that Melbourne’s high-rise makeover—long mooted, often contested—is no longer hypothetical. Stakeholders now face an urgent question: can the redevelopment deliver more public housing without displacing the very community it is meant to serve?