Experts argue that investing in social housing construction could more effectively address both supply issues and urgent social needs than simply extending stamp duty concessions.

Victoria has set an ambitious goal to construct 800,000 new homes by the end of the decade, a target established by former Premier Daniel Andrews.

These new zoning changes will streamline approval processes for apartment buildings located near public transport, allowing developers to bypass local council requirements.

Modeling from the Grattan Institute suggests that achieving housing targets could lead to a 13% reduction in rents by 2034, potentially saving renters around $14 billion over the next decade.

Looking ahead, future housing policy should consider significant tax reforms, including the elimination of stamp duty in favor of a broad-based land tax.

In response to the housing crisis, the current Allan government is implementing zoning changes around 50 train and tram activity centers to facilitate increased housing development.

Despite the need for more housing, new apartment commencements in Victoria have fallen to decade lows, highlighting the urgency of the situation.

While some opponents of increased density express concerns over neighborhood character, similar initiatives in New South Wales have garnered public support.

However, the construction of new apartments is being hindered by rising costs, labor shortages, and increased borrowing costs resulting from interest rate hikes.

Current state and local planning laws are seen as obstacles to building new housing in desirable suburbs, often catering more to the interests of existing residents.

Building in established suburbs is more cost-effective, as infrastructure costs are significantly lower compared to new developments on the urban fringe.

Experts emphasize that Melbourne must focus on increasing housing supply in inner and middle-ring suburbs where demand is high, rather than in the less desirable urban fringe.

The government's extension of stamp duty concessions for first-home buyers aims to stimulate housing construction, but it may not directly benefit those looking to purchase homes.