Melbourne councils admit they will not cope with planned population growth

Thursday 3 September 2026

Melbourne’s population has already expanded by around 2 million people (roughly 57%) this century, from around 3.5 million in 2000 to 5.5 million currently.

This rapid growth has been highly problematic, creating intense pressure on infrastructure and services. Victoria’s per capita economic growth and productivity have also lagged the nation’s significantly.

The state is drowning in debt, in part because of the massive infrastructure spending to accommodate the flood of arrivals into Melbourne, which never keeps pace.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.