This report looks at how existing demand for housing in new greenfield suburbs can be shifted to established suburbs, closer to existing infrastructure such as schools, hospitals and public transport.

Infrastructure Victoria's 18-month research project included 22 focus groups, analysis of more than 344,000 properties sold from January 2017 to June 2022 in greater Melbourne, and a survey of over 6000 people from Melbourne, Geelong and Ballarat – the largest of its kind in Australia.

One in 5 households said they would trade a detached home in a new suburb for a townhouse or apartment for the same price closer to city centres. These families and first home buyers want more housing choices closer to existing infrastructure and family and friends. The analysis shows there is a lack of suitable housing for moderate income households, especially families and first home buyers, in established suburbs. This is pushing people further away from jobs, schools and public transport, and locking them in to more travel time in the car.

The report offers 10 policy options for the Victorian Government to support more choice for moderate income households who prefer to live in established suburbs, including: fast-tracking planning approval for high-quality townhouses, better standards for low-rise apartments and changes to developer infrastructure contributions.