Where will Victoria’s new homes be built? Competing Liberal and Labor visions are as much about politics as planning

The Guardian World

by Benita Kolovos

February 25, 2026

AI-Generated Deep Dive Summary

A significant political and planning contest has emerged in Victoria over housing policy, with competing visions from the Liberal and Labor parties shaping where new homes will be built. The debate centers on Melbourne’s urban development, with opposition leader Jess Wilson proposing to expand the capital city zone to include areas like Collingwood, Fitzroy, Fishermans Bend, North Melbourne, Parkville, and parts of Southbank. This plan aims to lift height limits, increase density, and encourage development to revitalize the CBD and surrounding neighborhoods. Wilson’s proposal reflects a broader push to address housing shortages by intensifying urban growth within existing city boundaries rather than sprawling outward. However, Jacinta Allan, leader of the Victorian Liberal Party, has criticized the plan, arguing it unfairly prioritizes inner-city areas at the expense of younger residents and those on lower incomes. Allan claims the policy would “lock millennials out” by concentrating development in already gentrified zones, leaving fewer opportunities for affordable housing elsewhere. The debate highlights the intersection of politics and planning in addressing Victoria’s housing crisis. While Wilson frames his plan as a bold step to create a more vibrant, interconnected city, Allan warns it risks exacerbating inequality and limiting access to housing for future generations. The outcome of this contest will shape Melbourne’s urban landscape and its ability to accommodate growth while ensuring equitable opportunities for all residents. This issue matters globally, as cities grapple with housing shortages and the challenges of sustainable urban planning. Victoria’s experience offers insights into how political decisions can either enhance or hinder efforts to balance development needs with social equity. The outcome of this debate could set a precedent for similar policy choices in other regions facing comparable pressures.

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Originally published on The Guardian World on 2/25/2026