Housing Targets for Yarra

Yarra’s housing target as set in Plan for Victoria is 44,000 dwellings, counted from mid-2024. The target is a theoretical dwelling capacity target (e.g. how many more homes the planning would theoretically allow for) and not an actual delivery target (i.e. does not mean homes to be built). 

According to recent expert evidence in Standing Advisory Committee hearings for C291yara, C293yara, C273yara and 271yara, it was identified that Yarra has significant capacity, mainly in its Activity Centres (e.g. main streets of Victoria Street, Smith Street etc). While Yarra can already accommodate significant housing growth, State Government have indicated that Yarra have a shortfall in its capacity, but the exact shortfall is unclear at this stage.

In January 2026, the state government published Planning Practice Note 90: Planning for Housing. In this, it asks Councils to use the new Housing Capacity Assessment Platform (HCAP) which is a tool developed by the State Government to support the delivery of the state’s long term housing goals. This model aims to assist councils finding a pathway on how to address the shortfall and meet the target. There are assumptions that HCAP relies on model capacity for Yarra, however it is not fully clear at this stage.

Yarra is undertaking its own analysis and working with the State Government to identify the exact shortfall and a path forward to achieve the housing target.

Further work includes the translation of the Design and Development Overlays within Amendments C271, C273 and C291 to the Built Form Overlay. The identification of strategic redevelopment sites within Yarra as per Plan for Victoria is also underway. Once ready, it is Council’s intention to engage with the community to ensure local views are considered before finalising updates to the planning scheme.