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These areas will have Suburban Rail Loop stations, with each stop along the underground railway between Cheltenham and Box Hill flagged for higher density living and employment.

Box Hill and Doncaster were also picked for major activity centres and capacity for Future Homes alongside rapidly changing suburbs such as Reservoir and Footscray.

But inner suburbs such as Fitzroy, Carlton, Williamstown and Hawthorn are largely ineligible because of heritage protections.

Beachside suburbs along the Sandringham line are also protected by planning rules that control building heights and features.

Other areas caught in between railway lines, such as Wantirna South, are also currently out of scope.

Dr Stephen Glackin, from Swinburne University’s Centre for Urban Transitions, said government designed homes had historically played a big role in supporting development as the country grew.

“They’re reasonably affordable, they’re accommodating the population for the time, and they’re doing a job,” he said.

“They could be seen as maybe ushering in the next revolution in housing in Victoria.”

But he said the business case needed further work and developers needed to come on board to make it a reality.

When The Age visited Glen Waverley, one of the neighbourhoods identified as ripe for Future Homes, most locals were keen to see more housing – but doubted the suburb had much capacity.

University student Svetlana Staples, 19, needs to find a rental before the end of the month after moving from Cairns and said house inspections had been crowded and competitive.

“I’d be happy with an apartment or a house, I don’t really care as long as I have somewhere to live.”

Staples wanted to see more housing in the area but had reservations about “where everyone would fit”.

“I don’t have a car, which is great because I wouldn’t be able to find a park here anyway.”

Real estate agent Karin Carter, 68, was eager to see more housing to meet demand but only if more parking was provided.

“There’s a lot of heritage restrictions around areas near the city, so developers’ hands are pretty-much tied, they can only build in areas they’re allowed to,” Carter said.

“We’ve got to think outside the square, which I don’t think the government is doing.”

John and Barbara Hurst have watched Glen Waverley become increasingly popular after 35 years in the neighbourhood.

They were not opposed to greater density but were sceptical how much population growth the suburb could accommodate.

“Look ,there’s no point driving anywhere around here because parking is an absolute nightmare,” John said.

Opposition planning spokesman James Newbury accused the government of an "attack on Victorian suburbs" and urged the community to push back.

“Labor is taking away the rights of 150,000 Victorians and ramming in high-rise apartment blocks in the suburban streets up to two kilometres from the Suburban Rail Loop,” he said.

“What’s worse is we know Labor intends to ignore planning laws, community character, heritage protections and allow the minister to approve the worst types of development.”

A Victorian government spokesman said builders and developers had already shown strong interest in the program.

“We’re using every lever at our disposal to build more homes and through Future Homes, we have made it easier and quicker to build quality and sustainable apartments.”

“[Opposition Leader] John Pesutto and the Liberal Party have no credibility when it comes to housing affordability, openly campaigning to block the one thing that will make housing more affordable – building more homes.”

With Rachel Eddie

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