Abstract
This article considers suburban development in Australia through the lens of its second largest city, Melbourne. Contemporary urban policies have focussed on the low densities within Australia's capitals and tried to achieve sustainability through urban consolidation policies. The article argues that these policies are often based on a distorted understanding of the relationship between housing markets and labour markets in Australia's large metropolises. The analysis of suburban development in Melbourne shows that suburban development involves complex links between changes in housing and job location and that urban sustainability policy needs to include actions designed to change the distribution of employment as well as the location and density of housing. The article shows that the vast spread of the Melbourne population masks closely linked regional labour and housing markets.
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