Homeownership in Victoria has suffered the largest setback of any state over the past 12 months, according to the latest CommSec State of the States report.

Released May 1, the CommSec State of the States report – a quarterly ranking of economic performance – demonstrates significant falls in both the affordability and accessibility of new homes in Victoria, including a 33.8 per cent reduction in the total value of new Victorian home loans, the largest drop of any state, and a 28.2 per cent reduction in new home starts, again the largest drop of any state.

The latest data follows reports the state government is set to introduce new property taxes, including a tax on new homes, which will add $20,000 to the median price of a new home.

Shadow Minister for Home Ownership and Housing Affordability, Jess Wilson said urgent action was needed to increase Victoria’s housing supply and give homebuyers the best opportunity to make their dreams come true.

“With fewer homes being built and less capacity to borrow and finance new loans, for too many Victorians, the dream of home ownership continues to slip further out of reach,” Ms Wilson said.

“The Liberals and Nationals understand the financial and social security homeownership brings and support action to give Victorians the best opportunity to own their own home.

“More taxes on homebuyers and homebuilders isn’t the solution. The Andrews government have an impossible task of explaining how yet another property tax hike will solve the housing affordability crisis in Victoria.

“Victoria needs a wholistic plan to increase supply, and reduce red tape so more families can own their own piece of our great state.”