History of Melbourne - 2000s

2000s

In the early years of the 21st century, Melbourne entered a new period of high economic and population growth under the more cautious Labor government of Steve Bracks, which restored public expenditure on health and education. As the city's suburbs continued to sprawl outwards, the Bracks government sought to restrict new suburban growth to designated growth corridors and encourage higher-density apartment living in the city's main transport hubs.

The city's Central Business District experienced a major resurgence in the 2000s, aided by a large increase in inner-city apartment living, the opening of new public spaces such as Federation Square and the new Southern Cross railway station, a determined marketing campaign by Lord Mayor John So's City Council and continuing development of the Southbank and Docklands precincts.

Since the late 2000s, population growth in Melbourne has been accelerating. Since the early 20th century, the city has been expanding outwards with low-density suburban urban forms to accommodate population growth. As this urban form is unsustainable, many sustainable alternatives have been proposed and implemented into policy to limit suburban sprawl, create transit-oriented urban environments and affordable housing and rent. However, in 2009 the Victorian Government announced plans to extend the city's urban growth boundary, potentially rezoning green wedges and agricultural land for housing development.

Since 1997, Melbourne has maintained significant population and employment growth. There has been substantial international investment in the city's industries and property market. Major inner-city urban renewal has occurred in areas such as Southbank, Port Melbourne, Melbourne Docklands and more recently, South Wharf. According to the Australian Bureau of Statistics, Melbourne sustained the highest population increase and economic growth rate of any Australian capital city in the three years ended June 2004. The city survived the Global Financial Crisis better than any other Australian city, adding more jobs in 2009 than any other Australian city, almost as much as Brisbane and Perth combined, the 2nd and 3rd fastest growing cities.

These factors combined has led to yet further suburban expansion through the 2000s into Green Wedges and beyond Urban Growth Boundaries, to accommodate the large population growth. Melbourne's property market is currently in a bubble, with property largely expensive and unaffordable, and widespread rent increases. The most recent generation of Melburnians are expected to see a sharp decline in housing and property ownership in line with unaffordability.

Despite lack of a progressive economy, general lack of government funding for public services such as public transport, and continued unsustainable urban growth, the city has seen sustained growth in its cultural institutions such as art, music, literature, performance, etc., as many contributors to and patrons of the arts relocate to Melbourne amongst excellent independent community support structures such as press and radio and a thriving cultural community. In 2003, Melbourne was named as a UNESCO City of Literature and the city hosts the majority of Australia's contemporary festivals, events and institutions, new galleries, music venues, museums, of all shapes and sizes are opening across the city.

From 2006, the growth of the city extended into "green wedges" and beyond the city's Urban growth boundary. Predictions of the city's population reaching 5 million people pushed the state government to review the growth boundary in 2008 as part of its Melbourne @ Five Million strategy. Melbourne survived the financial crisis of 2007-2010 better than any other Australian city. In 2009, more new jobs were created in Melbourne than any other Australian capital - almost as many as the next two fastest growing cities, Brisbane and Perth, combined. and Melbourne's property market remained strong, resulting in historically high property prices and widespread rent increases.

In February 2010, The Transition Decade, an initiative to transition human society, economics and environment towards sustainability, was launched in Melbourne.